07 April 2008

Oops almost missed the Goopedia story

So this came out on April 1st so we can all be forgiven for this one.

This is completely insane to think that Expedia would buy Google. Dara and crew know that the stock of the target is way down already....... wait.... is it the other way round?

OK - so this is Troogle 2.0. It was a stupid idea then and its a stupid idea now. Rich Barton - my former colleague at Expedia is on the record for agreeing:

"Google does such a good job skimming all of the really high margin profits from the travel media business already via paid clicks that I am not sure why they would want to get their hands so dirty just to get another bit of the margin. They just don't need to. They are at the very top of the pyramid of skimming the profits out of the business because they probably get paid on average $3 a click for a hotel, air, a cruise or a package keyword on Google right now and they don't have to do anything.... It doesn't make a tremendous amount of sense to me unless Google is changing strategies to target deep verticals to get into, which they have not done yet to date."
He continues to speculate its some Wall Street shenanigans

"That happens a lot these days. I may be paranoid and seeing the bogey man, but there is a lot of money in hedge funds that thrive off of short term price changes and I think that is what is going on here."

Amen Rich...



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