Search engine Google dropped Goldman Sachs as an underwriter for their upcoming IPO. Goldman Sachs was removed from consideration based on Google's claims that the investment bank acted in a manner that angered them.
The reason Google dropped Goldman Sachs stems from Google's demand that underwriting banks develop new ideas to underwrite the search engine instead of relying on "business as usual" tactics.
After making this declaration, Google learned that Goldman Sachs's Chairman and Chief Executive Henry Paulson had contacted one of the search engine's big investors, Kleiner Perkins. According to Reuters via Newsweek, this angered Google and resulted in Goldman Sachs being removed from underwriting consideration.
Instead, Google went with investment banks Morgan Stanley and Credit Suisse First Boston. None of the mentioned companies were available for comment.
By WebProNews
Parent company Time Warner reported that America Online ad revenues increased by $27 million, a benefit of AOL's partnership with everyone's favorite search engine, Google. The partnership calls for Google to display search result ads within AOL's searches.
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These ads generated $74 million for AOL during the first quarter of 2004. This amount marks a 57% increase from the previous year. AOL's $27 million dollar increase almost balances the $31 million decline in ad revenue that Time Warner took from its other holdings.
AOL's paid search accounts for 35% of the company's revenue, according to DMNews. More and more, Google's ad programs have become essential for other search engines to generate positive revenue. Find engine AskJeeves reported that 69% of its revenue in the 2004 first quarter was from Google paid listings.
Although AOL's ad revenue increased, the company continues to lose subscribers. During the first quarter, AOL reported that 237,000 members unsubscribed from AOL's service, leaving the company with 24 million users.
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By WebProNews
In the Form S-1 that Google filed with the SEC this afternoon, the search engine names the companies with whom it has the most competition with. Calling the competition "formidable," Google gave names to the search engines it thinks will give Google the most competition.
A quote taken from the actual filing says, "we face formidable competition in every aspect of our business, and particularly from other companies that seek to connect people with information on the web and provide them with relevant advertising. Currently, we consider our primary competitors to be Microsoft and Yahoo."
Other engines named in the filing are AllTheWeb, AltaVista, as well as Inktomi.
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Google cites Yahoo's acquisition of Overture as the chief competitor to its own main source of revenue, Google's AdWords and AdSense programs. Microsoft has stated that they intend to "develop a new web search technology that may make web search a more integrated part of the Windows operating system."
This is the primary reason Google named Microsoft as a main competitor. They also cite Microsoft's larger financial resource base giving MS the ability to invest more money into search engine research than Google can.
Google also feels that Microsoft and Yahoo can attract and retain more users than Google can because both are internet portals. Google remains clear that its function is that of a search engine. Although, the launching of Gmail may beg to differ with that particular point of view...
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