The biggest threat facing Google's business is the potential end of network neutrality. The telecommunication corporations are eager to enhance their revenue, by cutting deals with businesses for priority speed access.
Suppose Verizon made a deal with MSN or Yahoo "We'll make your pages load faster, and we'll make sure Google's pages always take 2 seconds to load." That would be the end of Google.
Local phone and cable monopolies have been slow to roll out faster broadband service, because they have a monopoly. Greater access to better broadband service would greatly enhance Google's product. With Sprint-Nextel, Google could offer wireless broadband directly to customers.
Google bid approximately $5B in the recent spectrum auction. Google has a market capitalization of over $100B. Sprint-Nextel's market capitalization is under $10B. Google paid $1.65B for YouTube!
Google would be reluctant to do a hostile takeover. They might be able to negotiate a friendly takeover. If necessary, Google's executives should make a hostile takeover of Sprint-Nextel.
Sprint-Nextel is so cheap compared to Google's market capitalization. Acquiring a telephone company would allow Google to directly connect with customers, and would frustrate other telecommunication corporations' efforts to end network neutrality.
Tuesday, March 3, 2009
Google Should Buyout Sprint-Nextel
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1 comment:
This is a very interesting idea, especially given the past few weeks. I can see even more positives than you have in your article including Google/sprint exclusives. Imagine the possibilities! and the names... "grint", "spoogle".
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