SearchEngineUpdate with Vanessa Zamora - 01-31-2008
Abstract: 1. Google CEO, Co-Founders Commit to Google, 2. Strong Holiday Season Lifts Amazon’s Revenue, 3. 2 Communication Cables in the Mediterranean Severed, 4. FTC Settles With Member Source Media Over Spam Campaign
Vanessa Zamora
Video Content Producer, SearchEngineWorld
10:13 pm on Jan. 31, 2008 (utc 0)
Transcript
Thursday January 31st 2008
Google CEO, Co-Founders Commit to Google
Upon discovering that Google would be named Fortune magazine’s number one company to work for, for the second year in a row, founders Larry Page and Sergey Brin, along with CEO Eric Schmidt revealed in an interview that prior to Google’s 2004 initial public offering, the threesome made an informal pact to work together at Google for at least 20 years. The Google founders also revealed, this time on paper, that they would not shy away from making big long term bets at the expense of short term gains, which aligns with their intent to stay with the firm to see those decisions through. One such costly venture may include the potential purchase of wireless spectrum, that would enable Google to open up the wireless Internet market, but at a steep price of $4.6 billion or more. The possibility of such great expenditures has investors reacting and Google shares have seen a 22% drop in the past month. Google announced strong fourth quarter earnings today, with revenue of $4.83 billion, an increase of 51 percent over the same quarter in 2006.
e-retailer Amazon revealed a strong overall financial report on Wednesday, alleviating consumer spending concerns tied to a possible US recession. Due to a strong holiday shopping season, and despite lower profit margins in the fourth quarter, revenue was up 42 percent and profits nearly doubled at Amazon. Lower than expected profit margins and future outlook for those margins sent Amazon’s shares down about 13% in after hours trading. However, Amazon's CFO insists the numbers reflect what Amazon has done in terms of its customers, adding that the business is fine. Amazon has continued to invest in its new technology and its costly free shipping program.
2 Communication Cables in the Mediterranean Severed
The Middle East, Asia, and India have suffered widespread Internet problems, and international telephone service has been disrupted, causing major problems for businesses both locally and internationally. The problems were caused by two severed undersea telecommunications cables in the Mediterranean Sea. The two cables, which are separately managed and operated, were damaged within hours of each other on Wednesday. Even though most disrupted communications were quickly rerouted through other cables or by satellite and most large companies switched to backup plans, experts say it could take a week or more to restore full services. Damage to undersea cables, while rare, can result from movement of geologic faults, poor weather conditions, or even the dragging anchor of a ship. As well as impacting communications, businesses and the hi-tech industry in affected countries, the cuts can also have repercussions for banks and stock market trading.
FTC Settles With Member Source Media Over Spam Campaign
Internet users can thank the Federal Trade Commission for one less deceptive email or Internet offer for not so free products. Member Source Media, owned by Chris Sommer, has agreed to settle a U.S. Federal Trade Commission complaint claiming Member Source Media used deceptive spam and online advertising, such as claimed free ipod giveaways, to lure customers to its Web sites. Under the settlement, Member Source Media is required to disclose the costs and obligations associated with the advertised products and services. Member Source Media is also barred from sending e-mail that violates the CAN-SPAM Act, which regulates the sending of unsolicited e-mail, and must also pay $200,000 in civil penalties. The settlement against Member Source Media was approved Wednesday in the U.S. District Court for the Northern District of California.
10:13 pm on Jan. 31, 2008 (utc 0)