0
In renewing its deal with AOL could Google afford to pay AOL more than 100 percent of the revenue generated from AOL searches?
Wiki User
∙ 14y ago
Sounds like youre doing the Google case.. The instructor took us through the answer to do this. you need to take an average of the US search growth forecast from the exhibit at the back for the next 4 years and then grow google's $600m revenue from AOL by this rate for 5 years. then just take 10% of that number (because google gives back 90% to AOL as the case states on page 1). This is their revenue for the deal. JPMorgon also said they over paid. It is arguable that JPMorgan was correct in saying it was worth 13.7 billion (you can decide for yourself), however subtract this "overpayment" from the revenue and then subtract the $300 million in advertising credit (that was part of the negotiation). You should end up with -$75mil
01/19/09 Edit: Agree about valuation... 5.5 billion according to most articles on the net.
http://mediamemo.allthingsd.com/20090122/google-aol-is-worth-55-billion/ .
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is internally generated revenue?
Revenue that is generated internally!
What is international revenue?
Revenue that is generated internally!
How much revenue would be generated by a 5 percent tax on all illegal drugs each year?
Enough to clear the national deficit within 20.
What is a source of revenue?
profits that are generated thru distubuting of products of servies
How do you find percent of revenue for cost?
cost/revenue x100%
How much revenue has the operating room generated since opening?
It is estimated that the amount of revenue that the operating room has generated since its opening is about 2.59 billion dollars. This is based on the records of January 2014.?æ
How does government pay for the goods and services that it provides to the public?
If you mean who pays for the government, then it is the taxpayers money. All the money that you pay in government fees, road tolls, rates and taxes all go to the government.
What is net Interest?
Net Interest refers to the revenue that is got from the difference between cost of servicing liabilities and the revenue generated by assets that bear interest. This considered to be an excess revenue.
Difference between capital income and revenue income?
Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.
What is the rationale for recognizing costs as expenses at the time of product sale?
Matching Cost against Revenue principles stipulate that a revenue generated must have an associated cost to it. As & when a revenue is recognized, so is the cost.
What are performance ratios?
Measure of profitability in relation to sales revenue, this ratio determines the net income earned on the sales revenue generated. Formula: Net income x 100 ÷ Sales revenue.
Is this a pay for the answers?
No, answers are provided by volunteers and users. Revenue is generated via onsite advertising
