Zacks.Com Announces That Ian Wyatt Highlights the Following Stocks: Google, Microsoft and Yahoo
Posted on: Friday, 30 December 2005, 06:00 CST
Ian Wyatt, editor of the Growth Report newsletter, discusses a recent deal between a couple of well-known Internet names. Read about Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Yahoo (NASDAQ:YHOO). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84
Highlights from the December 21 Featured Expert column by Ian Wyatt include:
There's a new sheriff in town and his name isn't Mr. Softee. It's Eric Schmidt, CEO of Google (NASDAQ:GOOG), and he's now clearly more than a mere David to Microsoft's (NASDAQ:MSFT) Goliath.
Late Tuesday, Google and Time Warner Inc. agreed to a $1 billion investment by Google in exchange for a 5 percent stake in AOL that includes a broader advertising relationship between the two, including video content from AOL and a newly announced instant-messaging arrangement. Under a deal, Google would highlight AOL's Web properties while remaining the exclusive search engine for AOL subscribers, with AOL continuing to sell ads through Google.
Yet, the more interesting part of this deal involves what it will not offer Microsoft. Left on the sidelines, Microsoft claim no longer claim it has the chops to cut it in big time search - while it also loses the immediate leg up it needs in the online advertising wars. AOL will continue to sell Google's, rather than Microsoft's, search ads, thus remaining Google's biggest customer, contributing roughly $420 million to Google's sales, equal to about 10 percent of the search giant's reported revenue in 2005.
Google will not only pony up the $1 billion for 5 percent of AOL, this deal now completes the offensive move Google set in motion in 2002 when it replaced AOL's then online advertising network, now owned by Yahoo (NASDAQ:YHOO), with its own ad network - thereby all but taking that business away from Microsoft not once, but twice!
Read Ian Wyatt's entire commentary on the stocks above and discover other stocks by clicking: http://at.zacks.com/?id=85
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Source: Business Wire
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