Research

Google

Description

If you've never Googled, you probably aren't finding what you want online. Google operates the leading Internet search engine, offering targeted search results from more than 8 billion Web pages. The site, which ranks results based on a proprietary algorithm, offers search results in more than 35 languages and attracts an audience of more than 380 million people worldwide. The company generates revenue through ads that are targeted by keywords. Google also sells ads across a network of more than 200,000 affiliated Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company.

While Google's core business includes search engine services and advertising, the company also provides Web portal services such as Webmail, blogging, photo sharing, and instant messaging. Other tools Google offers to help its users make the most of their digital life include comparison shopping services (Froogle), an online image library (Google Images), general news stories (Google News), financial news (Google Finance), interactive maps (Google Maps), and Internet discussion groups (Google Groups).

The heart of Google's business, however, is its advertising system, comprised of its AdWords and AdSense products. Customers of Google AdWords consist of advertisers who seek to drive qualified traffic from Google to their sites and generate leads. Advertisers bid on keywords and have their ads appear as links on right hand column of Google's search results page under the sponsored links heading. Google powers the search capabilities of other publishers' Web sites and search engines through its AdSense for Search product.

With Google's Ad Sense for Content, Google automatically delivers ads to a publisher's Web site that are precisely targeted to the content on the publisher's site, and the publisher shares in the revenue generated when readers click on the ads. Customers of Google AdSense include publishers of third-party Web sites that comprise the Google AdSense Network. The AdSense Network includes many small Web sites but has also attracted several big players in online publishing and e-commerce, including AOL, IAC Search & Media (Ask.com), and NYTimes.com.

The company opened up its well-stuffed wallet with the purchase of YouTube for more than $1.6 billion in order to complement its online video offering (Google Video). In addition, Google has announced plans to acquire digital ad firm DoubleClick for $3.1 billion. The deal will solidify Google's dominance in the online ad industry.

In addition to these deals, in 2006 the company made high-profile agreements with News Corp.'s Fox Interactive Media (FIM) and Viacom's MTV Networks. FIM selected Google as the $900 million high bidder for providing search on MySpace.com and other Fox properties in a multiyear search agreement, and Google will distribute MTV video (shows such as Laguna Beach and Sponge Bob Square Pants) to a variety of sites. Google separately announced agreements with Warner Music Group and Sony BMG to make music videos and other content available for free through its video service and on partner sites.

With rivals (and former technology licensees) Yahoo! and MSN launching their own search engines and targeted advertising systems, Google is locked in a race to develop new search tools to attract users and to expand its advertising networks. In 2005 it agreed to invest $1 billion for a 5% stake in AOL, gaining ad distribution throughout the content portal's network of sites. Under the deal, AOL continues to use Google's search technology and the two companies work together to make their instant messaging software compatible with one another. AOL also gets about $300 million in promotional advertising for its online properties through Google's AdSense Network.

Google is facing its international rivals head on. The company is focusing on China, where Baidu.com is the market leader. Google has announced a Chinese-language brand name and is expanding a Beijing research center to develop new products.

Google takes its name from "googol," the mathematical term for the value represented by a one followed by 100 zeros. (In keeping with that theme, the company's headquarters is referred to as "the Googleplex," a play on googolplex - a one followed by a googol zeros.)

Chairman and CEO Eric Schmidt has about 10% voting control through his 5% equity stake.

 

Vans

Description

Ackermans & van Haaren (AvH) really digs its holding company status. The company's interests span three sectors; dredging and environmental services, financial services, and private equity. AvH owns a 50% stake in DEME, a dredging and environmental services firm serving the oil and gas industry. Its financial services holdings include majority ownership stakes in Bank Delen, which offers asset management services primarily to private individuals, and Bank J. Van Breda specializing in personal and business banking services for family-owned businesses and entrepreneurs. The company also owns about 75% of Sofinim, which provides equity financing services to medium-sized businesses.