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  • Why Microsoft should mull Baidu buyout

    Posted May 05 2008, 06:15 AM by Douglas McIntyre
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    Google rules the search world in all but one important country. China not only has the largest population in the world, it has the largest number of people online totaling 221 million users. It passed the US last month for total number of internet citizens. At some point China could have 500 million people on the worldwide web, more than double the US.

    Google's share of the search market in China is only 25%. Local search engine Baidu has 60%.

    Baidu is a very small company when put along side Google. Revenue at the Chinese company many hit $200 million this year. Operating income might be $60 million. Google's revenue will be well over $20 billion this year. Operating income should be almost $10 billion. Still, Google can't make progress in China.   Read More...

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  • Social networks, video-sharing sites losing their promise

    Posted Feb 05 2008, 02:59 PM by Douglas McIntyre
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    A look at News Corp earnings shows that the "other" revenue and profit line, which is mostly its online service MySpace, only had an operating profit of $23 million. MySpace is one of the largest websites in the world. That can't be good for the value of social networks. So far, there is not a lot of evidence that the universe's largest video-sharing site, YouTube, is bringing in much money for Google.

    According to The Wall Street Journal, an "issue is advertiser comfort with having their ads displayed alongside less-predictable content."

    Predictability is not the entire problem. Social networks and video-sharing sites are a maze of unrelated content of questionable quality. Sites like MySpace have a large portion of their members who are weirdos and agoraphobics. Advertisers who spend any times on these sites know that.   Read More...

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