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In renewing its deal with AOL could Google afford to pay AOL more than 100 percent of the revenue generated from AOL searches?
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/ .
What else can I help you with?
What is internally generated revenue?
Revenue that is generated internally!
What is international revenue?
Revenue that is generated internally!
What is the estimated annual revenue generated by the sex industry?
The estimated annual revenue generated by the sex industry is around 186 billion worldwide.
What is the estimated revenue generated from sex tourism in Thailand?
The estimated revenue generated from sex tourism in Thailand is around 6.4 billion annually.
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.
How do you find percent of revenue for cost?
cost/revenue x100%
What is a source of revenue?
profits that are generated thru distubuting of products of servies
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.
How can one determine the total revenue from marginal revenue in a business setting?
To determine total revenue from marginal revenue in a business setting, you can multiply the marginal revenue by the quantity of goods or services sold. This will give you the total revenue generated from each additional unit sold.
What are the three types of revenue?
The three types of revenue are operating revenue, non-operating revenue, and other revenue. Operating revenue is generated from a company's primary business activities, while non-operating revenue includes income from secondary activities. Other revenue encompasses one-time or irregular income sources.
