Friday, May 25, 2007Labels: online report
By Tameka Kee
THOUGH YET TO BE CONFIRMED by either company, Google's rumored acquisition of Feedburner for $100 million seems small compared to the recent spate of billion-dollar ad network deals. But insiders say it was only a matter of time before the Web's predominant RSS supplier would be snatched up by one of the "big three."
"It was bound to happen. And it's a good move on Google's behalf if it goes through for $100 million," said Dan Brough, vice president and search director, DraftFCB. "It's really a bargain for what, by most standards, is the dominant feed syndicator in the industry."
While Feedburner is not exactly a fledgling company (it reportedly boasts more than 67 million feed subscriptions and partnerships with media outlets such as The Wall Street Journal, USA Today and CIO.com), the acquisition would be in line with statements that Google CEO Eric Smith made at a shareholders' meeting weeks ago--namely that Google views buying smaller tech firms, not huge ones, as the bread and butter of its merger strategy.
Adding Feedburner to its portfolio would give Google a number of gains. The ability to roll tracking statistics on Feedburner's reported total of more than 720,000 feeds into Google Analytics is the most obvious, as the business of online advertising increasingly gets driven by trailing and deciphering user behavior. "Google's Analytics suite will definitely benefit over time through this acquisition," said Brough.