Google and the Unexpected Consequences of a Hot Property
September 1, 2010
I don’t know much beyond what I have read in “Google Making Extraordinary Counteroffers To Stop Flow Of Employees To Facebook.” The idea is a good one if you are a Googler, want to ride a rocket with a chance to land at Planet IPO, and are of interest to the Xooglers at Facebook. Heck, who wouldn’t jump ship to get a shot at a big pay day? One doesn’t have to relocate or even worry about fitting into the company, which I have heard has a number of Xooglers on staff.
What is interesting is that for the first time in the history of Google, the Mountain View giant has a true competitive problem that is not going to be easy, cheap, or quick to resolve. The legal matters are less tricky than a hot company with a targeted ad pitch and an opportunity to create a curated index for search and retrieval. I think Google can match Facebook’s technology. In some ways, Google can outgun Facebook. However, Facebook—despite its flaws—is not yet public. Employees lucky enough to get options at Facebook could make some dough. With Facebook’s user base growing and its targeted ad angle, Facebook may be putting the heat on Google to pull a rabbit out of its hat.
The case example of Microsoft’s effort to catch Google in search is now becoming a case example of Google trying to catch Facebook. Google finds itself chasing a bunch of smart folks who are not yet public and who have a service that defies understanding by some people. Nevertheless, Facebook seems to be on a roll. The irony for me is that Microsoft has a stake in Facebook, which in my opinion makes Microsoft look pretty sharp in the social investment department.
The summer of 2010 has been a challenging one for Google. One hopes its management team and management processes are up to the challenge of its social neighbor.
Stephen E Arnold, September 1, 2010
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