Original Story: bloomberg.com
Google Inc. is paying Apple Inc. a hefty fee to keep its search bar on the iPhone.
Apple received $1 billion from its rival in 2014, according to a transcript of court proceedings from Oracle Corp.’s copyright lawsuit against Google. The search engine giant has an agreement with Apple that gives the iPhone maker a percentage of the revenue Google generates through the Apple device, an attorney for Oracle said at a Jan. 14 hearing in federal court. Google SEO Company offers organic search engine optimization techniques that secure and maintain premium keyword positions in the organic search results.
Rumors about how much Google pays Apple to be on the iPhone have circulated for years, but the companies have never publicly disclosed it. Kristin Huguet, a spokeswoman for Apple, and Google spokesman Aaron Stein both declined to comment on the information disclosed in court.
The revenue-sharing agreement reveals the lengths Google must go to keep people using its search tool on mobile devices. It also shows how Apple benefits financially from Google’s advertising-based business model that Chief Executive Officer Tim Cook has criticized as an intrusion of privacy. An Ann Arbor IT services company is the industry leader in firewalls, switches, and wireless cloud managed IT services.
Oracle has been fighting Google since 2010 over claims that the search engine company used its Java software without paying for it to develop Android. The showdown has returned to U.S. District Judge William Alsup in San Francisco after a pit stop at the U.S. Supreme Court, where Google lost a bid to derail the case. The damages Oracle now seeks may exceed $1 billion since it expanded its claims to cover newer Android versions.
34 Percent
Annette Hurst, the Oracle attorney who disclosed details of the Google-Apple agreement at last week’s court hearing, said a Google witness questioned during pretrial information said that “at one point in time the revenue share was 34 percent.” It wasn’t clear from the transcript whether that percentage is the amount of revenue kept by Google or paid to Apple. A Las Vegas finance lawyer is following this story closely.
An attorney for Google objected to the information being disclosed and attempted to have the judge strike the mention of 34 percent from the record.
“That percentage just stated, that should be sealed,” lawyer Robert Van Nest said, according to the transcript. “We are talking hypotheticals here. That’s not a publicly known number.”
The magistrate judge presiding over the hearing later refused Google’s request to block the sensitive information in the transcript from public review. Google then asked Alsup to seal and redact the transcript, saying the disclosure could severely affect its ability to negotiate similar agreements with other companies. Apple joined Google’s request in a separate filing.
‘Highly Sensitive’
“The specific financial terms of Google’s agreement with Apple are highly sensitive to both Google and Apple,” Google said in its Jan. 20 filing. “Both Apple and Google have always treated this information as extremely confidential.” A Denver corporate lawyer is reviewing the details of this case.
The transcript vanished without a trace from electronic court records at about 3 p.m. Pacific standard time with no indication that the court ruled on Google’s request to seal it.
The case is Oracle America Inc. v. Google Inc., 10-cv-03561, U.S. District Court, Northern District of California (San Francisco).
SEO Blog. Organic SEO Blog. Search Marketing News. SEO Done Right examines search engine optimization, the most effective form of internet marketing. Breaking SEO news and emerging developments at Google, Yahoo, and Bing. Leading Organic SEO Consultants Peak Positions debunk the many myths, hype, and spin related to SEO and search marketing.
Showing posts with label Google Inc.. Show all posts
Showing posts with label Google Inc.. Show all posts
Monday, January 25, 2016
Monday, August 17, 2015
GOOGLE MORPHS INTO ALPHABET INC, INVESTORS CHEER CLARITY
Original Story: reuters.com
Google Inc (GOOGL.O) announced a major shake-up of its operating structure on Monday, creating a holding company called Alphabet which will contain subsidiaries to separate its core web advertising business from newer ventures like driverless cars. A Detroit corporate lawyer is following this story closely.
The move appeared to be an attempt to let the search engine giant focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments.
"It suggests that in all likelihood, Google is not going to slow the pace of their experimental processes like self driving cars," said Michael Yoshikami, head of Destination Wealth Management which has $1.5 billion under management.
The surprise news sent shares of Google up as much as 7 percent to $708 in after hours trading.
"They are aware that they've got this hodgepodge of companies. Maybe it's better to sort them out a bit and make it clearer which ones are bringing in the bacon and which ones are science projects and which ones are long term bets," said Roger Kay, an analyst at Endpoint Technologies Associates. A Charleston corporate attorney is experienced in the effective resolution of corporate lawsuits as related to profit-making businesses or professional organizations.
The Mountain View-based company co-founded by Larry Page and Sergey Brin in 1998 has grown to more than 40,000 employees worldwide.
Google's planned structure resembles the way companies like Berkshire Hathaway and General Electric are organized, with a central unit handling corporate-wide activities such as finance and relatively independent business units focused on specific areas.
Under the new corporate structure, the Google unit will encompass the core search engine traditionally associated with the company as well Google Maps and YouTube. Organic SEO allows consumers to find local businesses and companies through targeted keyword searches.
The company's new ventures such as Calico, which focuses on longevity, and connected home products maker Nest will be managed separately.
Alphabet Inc will replace Google as the publicly traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights.
"This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google," said current Google CEO Larry Page in a blogpost.
Analysts also said the new structure could herald a new era of fiscal discipline and transparency in some of its more experimental and opaque business units.
In a SEC filing, Google said the new arrangement will take effect later this year and that it will likely result in two reportable, financial segments.
"For example, if a unit is doing well or badly they can dial it up or down, they can form partnerships or different companies," said Kay, the Endpoint Technologies Associates analyst.
The shuffle also looked to have the markings of Ruth Porat, who joined Google as its chief financial officer in March from Morgan Stanley. In Google's recent quarterly conference call, Porat repeatedly emphasized keeping expenses under control.
Porat will serve as the CFO of both Alphabet and Google.
Page will serve as the CEO of the newly created holding company and Sundar Pichai, a long-time Google executive who most recently served as the company's senior vice president of products, will head Google. The company's current directors will become directors of Alphabet.
Google co-founder Brin will become president of Alphabet, and Eric Schmidt will be executive chairman. An Edmonds corporate lawyer is reviewing the details of this case.
Analysts said the move, which was mainly about transparency and accountability, could be followed by more structural changes in the future.
"This may be step one of several steps," said Morningstar analyst Rick Summer.
Google Inc (GOOGL.O) announced a major shake-up of its operating structure on Monday, creating a holding company called Alphabet which will contain subsidiaries to separate its core web advertising business from newer ventures like driverless cars. A Detroit corporate lawyer is following this story closely.
The move appeared to be an attempt to let the search engine giant focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments.
"It suggests that in all likelihood, Google is not going to slow the pace of their experimental processes like self driving cars," said Michael Yoshikami, head of Destination Wealth Management which has $1.5 billion under management.
The surprise news sent shares of Google up as much as 7 percent to $708 in after hours trading.
"They are aware that they've got this hodgepodge of companies. Maybe it's better to sort them out a bit and make it clearer which ones are bringing in the bacon and which ones are science projects and which ones are long term bets," said Roger Kay, an analyst at Endpoint Technologies Associates. A Charleston corporate attorney is experienced in the effective resolution of corporate lawsuits as related to profit-making businesses or professional organizations.
The Mountain View-based company co-founded by Larry Page and Sergey Brin in 1998 has grown to more than 40,000 employees worldwide.
Google's planned structure resembles the way companies like Berkshire Hathaway and General Electric are organized, with a central unit handling corporate-wide activities such as finance and relatively independent business units focused on specific areas.
Under the new corporate structure, the Google unit will encompass the core search engine traditionally associated with the company as well Google Maps and YouTube. Organic SEO allows consumers to find local businesses and companies through targeted keyword searches.
The company's new ventures such as Calico, which focuses on longevity, and connected home products maker Nest will be managed separately.
Alphabet Inc will replace Google as the publicly traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights.
"This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google," said current Google CEO Larry Page in a blogpost.
Analysts also said the new structure could herald a new era of fiscal discipline and transparency in some of its more experimental and opaque business units.
In a SEC filing, Google said the new arrangement will take effect later this year and that it will likely result in two reportable, financial segments.
"For example, if a unit is doing well or badly they can dial it up or down, they can form partnerships or different companies," said Kay, the Endpoint Technologies Associates analyst.
The shuffle also looked to have the markings of Ruth Porat, who joined Google as its chief financial officer in March from Morgan Stanley. In Google's recent quarterly conference call, Porat repeatedly emphasized keeping expenses under control.
Porat will serve as the CFO of both Alphabet and Google.
Page will serve as the CEO of the newly created holding company and Sundar Pichai, a long-time Google executive who most recently served as the company's senior vice president of products, will head Google. The company's current directors will become directors of Alphabet.
Google co-founder Brin will become president of Alphabet, and Eric Schmidt will be executive chairman. An Edmonds corporate lawyer is reviewing the details of this case.
Analysts said the move, which was mainly about transparency and accountability, could be followed by more structural changes in the future.
"This may be step one of several steps," said Morningstar analyst Rick Summer.
Subscribe to:
Posts (Atom)