Is Googlezon Possible?

    March 31, 2006

Mahlon at BuyGoogle writes that, with their fresh stock offering money, Google could actually be in a position where acquiring Amazon isn’t the world’s craziest idea.

Google has $8 billion in cash, and Amazon’s market cap is “just” $15 billion. An outright buyout is not out of the question, with the right financial wrangling, and certainly Google could become the controlling shareholder with all that cash to spend.

The reasoning: Unlike most companies Google could buy, Amazon is the real deal. They’re a cornerstone of the internet economy, great profits, huge traffic and sales, an incredible brand, and an enormous customer base. Amazon is good at the one thing Google is not: selling product. Google could immediately diversify and strengthen its business, and guarantee longer-term stability.

Google and Amazon may both be net powerhouses, but they deal in completely different arenas, so the two combined could erase vulnerabilities and maximize the successes they already have. Amazon has technology and patents Google could take advantage of, and their recommendation system could be used all along the Google product line.

If Google’s serious about beating both Yahoo and eBay, this could be the way to go. I’m not saying its gonna happen, but talk about food for thought. If you’re biting, read the article, it has a lot more.

Now’s probably a good time to watch Epic again.

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Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

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