Google to Buy Internet

That got your attention, right? And, since this Blogger site is owned by Google, I'm sure their crawler found it, too.

But that's OK. My purpose is not criticism but rather sheer awe. Today it was announced that Google was making a bid to invest $1 for a 5% stake in AOL. Google is bloated inh cash, with about $5.5B in reserves following two stock issues in the last two years. With the stock trading at $430, Google is the Fat Cat of not just the dotcom survivors, but the entire US economy.

Seemingly Google can do no wrong. Its business model has been pretty simple: Acquire and then give it away for free. Apparently AdWords and AdSense are making so much money that they can just sit around and give the rest of the store away.

And that's good, for Google's motto is "Don't be evil." "Free" is a far cry from "evil."

I do wonder, though, at what's going on with the AOL deal. It seems to me more like an effort to simply keep Microsoft out of the equation. Let's face it: dial-up isn't cool, with over 50-percent of USAmerican homes now on broadband. AOL has seen its share of the market shrivel in recent years.

Yet Google (and Microsoft for that matter) want to be the sole search engine there. It's all about eyeballs, and even if the number of heads is shrinking, Google still stand to make money each time an AOL user clicks one of those ads along the side.

This is all well and good, but I think what Google really needs to be looking into is advertiser-driven free broadband that can be accessed by laptop, PDA, or cell phone. Couple that broadband with search and you've got real potential. Local advertising can guide searchers to the nearest Taco Bell, for instance.

It would be like having the phone book in your hands at all times, and the most eager businesses would be lining up to pay for their AdWords.

Think about it this way. When you're out and about, and suddenly need or want to visit a specific type of store or restaurant, your intentions are already well-defined. You're not just browsing at this point; you're ready to buy. What retailer in his right mind wouldn't pay a little for what is almost a guaranteed customer?

I give it a few years, and then we'll probably see Google roll out something like this. In the mean time, they'll keep buying up new members of their empire. Don't be surprised if they buy a third world country as well.

Just be sure to let me know when they start giving it away.

Dr "Missed the IPO" Gerlich