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Originally Posted by WiredGuy
Google is financially sound, it has its adwords / adsense as its primary business model. Even if its new spinoff businesses don't yield a dime, its still plausible to continue their operations to increase distribution of its PPC business.
In my opinion, most of these new projects are not intended for profit. It would be nice obviously, but its still fundamentally based on adwords/adsense.
WG
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That's their Achilles heel. The overdependence on one revenue stream--ads. The paid/private labeled search engine technology service isn't as big as Adsense. Basically, this foray into "other models" is Google's version of Yahoo's earlier efforts to wean itself off ad revenue. Good timing too since any ad market slow down would definitely ream them the same way Yahoo suffered in 2000 to 2003 thereabouts.