Google CEO Eric Schmidt said in September that the search leader will buy up one company a month in 2010. Here's a look at some of the leading contenders.
Twitter
What it is: A microblogging social network sensation that has taken the world by storm 140 characters at a time.
Why Google should buy it: With more than 60 million unique users a month, Twitter is one of the most popular and fastest growing social networks on the Web, according to comScore. Google's first foray into social networking, Orkut, didn't exactly take off, and its newest attempt, Google Wave, hasn't yet won over skeptics. Social network users spend more time online than the average Web user, and Google's advertising partners are keen to take advantage.
Why Google shouldn't buy it: Twitter's business model has yet to be determined, and they don't sell ads. Twitter also has had several security lapses recently. And because Twitter is such a hot brand, Google could face intense regulatory scrutiny if it bought the company.
Will it happen? A remote possibility. If a company can make money from Twitter, it's probably Google, but the jury's still out on whether social networks will ever be profitable.
Digg
What it is: Digg is a Web site that displays the Web's most popular content based on how many users share or "digg" an article or video.
Why Google should buy it: Unlike Yahoo and Aol, Google does not produce its own content, but it makes money by driving people to others' Web sites. That matches up perfectly with Digg's business model, including obvious synergies with Google News. It also plans to launch a feature in 2010 that shows what users are "digging" in real time.
Why Google shouldn't buy it: Digg isn't exactly the hottest Web property anymore. With Facebook and Twitter practically taking over the Internet, Digg lost heavy amounts of traffic in the past two months, tumbling 15% in November.
Will it happen? Probably. Two months of traffic declines don't mean the end has come, and live digs could help revitalize the brand.
Why Google should buy it: Unlike Yahoo and Aol, Google does not produce its own content, but it makes money by driving people to others' Web sites. That matches up perfectly with Digg's business model, including obvious synergies with Google News. It also plans to launch a feature in 2010 that shows what users are "digging" in real time.
Why Google shouldn't buy it: Digg isn't exactly the hottest Web property anymore. With Facebook and Twitter practically taking over the Internet, Digg lost heavy amounts of traffic in the past two months, tumbling 15% in November.
Will it happen? Probably. Two months of traffic declines don't mean the end has come, and live digs could help revitalize the brand.
Jumptap
What it is: Jumptap is a mobile advertising company that targets users with contextual ads.
Why Google should buy it: Google acquired AdMob, a rival mobile ad company, in November, and the move was widely praised as Google makes a big push into mobile. Like AdMob, Jumptap would offer Google its own array of international advertising and publishing partners. It could hurt rival Microsoft, which analysts say is in danger of missing the boat on mobile. Since most analysts view mobile phones as the next frontier for Web browsing and advertising, Google could use its muscle to corner the market before it explodes.
Why Google shouldn't buy it: The AdMob purchase hasn't been approved yet, and it is already facing some heat from government regulators. Buying up another big mobile advertising firm would probably raise more eyebrows in Washington.
Will it happen? Don't bet the house, but it could happen. With Google acquiring AdMob, a deal with Jumptap is a little less likely, but putting a nail in Microsoft's mobile coffin would give Google's board room a big reason to smile.
Yelp
What it is: The local business review site lets users give their opinion about restaurants, museums and other attractions around cities and towns.
Why Google should buy it: As more people use the mobile Web to help them make decisions about where to go, there is a growing market for local businesses to advertise online. Yelp is the most successful company so far to tap into the local market. A marriage between the two companies would help Google improve its social networking capabilities and it would open the door to partnerships with a huge number of local businesses that want to advertise.
Why Google shouldn't buy it: Yelp may be asking for too much. A more-than $500 million deal was reportedly agreed to, but Yelp pulled out at the last minute.
Will it happen? A good bet. A number of analysts think that Yelp broke the deal after the story leaked, hoping to get a higher bid from another potential suitor. But in the end, Google will probably win out.
Why Google should buy it: As more people use the mobile Web to help them make decisions about where to go, there is a growing market for local businesses to advertise online. Yelp is the most successful company so far to tap into the local market. A marriage between the two companies would help Google improve its social networking capabilities and it would open the door to partnerships with a huge number of local businesses that want to advertise.
Why Google shouldn't buy it: Yelp may be asking for too much. A more-than $500 million deal was reportedly agreed to, but Yelp pulled out at the last minute.
Will it happen? A good bet. A number of analysts think that Yelp broke the deal after the story leaked, hoping to get a higher bid from another potential suitor. But in the end, Google will probably win out.
Cellfire
What it is: Cellfire is a digital coupons company that allows users to access coupons on their mobile phones based on their location.
Why Google should buy it: Digital coupons aren't so different than the text ads that Google displays on its search results pages that offer deals and discounts. A deal for Cellfire could help Google's advertising partners bring their marketing tools to the physical world of supermarkets and stores. That could be a good deal for Google, its partners, and consumers.
Why Google shouldn't buy it: Digital coupons are cool, but not everyone is embracing them. Procter & Gamble recently ended what it called a digital coupon "experiment," and other advertisers and companies have yet to sign on.
Will it happen? Seems like it. If digital coupons take off, Google could strike advertising gold with a company like Cellfire. If not, it probably won't need to invest too much to buy it.
Why Google should buy it: Digital coupons aren't so different than the text ads that Google displays on its search results pages that offer deals and discounts. A deal for Cellfire could help Google's advertising partners bring their marketing tools to the physical world of supermarkets and stores. That could be a good deal for Google, its partners, and consumers.
Why Google shouldn't buy it: Digital coupons are cool, but not everyone is embracing them. Procter & Gamble recently ended what it called a digital coupon "experiment," and other advertisers and companies have yet to sign on.
Will it happen? Seems like it. If digital coupons take off, Google could strike advertising gold with a company like Cellfire. If not, it probably won't need to invest too much to buy it.
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