Google won’t buy a magazine business

Google won’t buy a magazine business: Even people I really respect and who know a lot more about the “media” business than I still don’t seem to understand Google’s business model depends on them cooperating with the maximum number of “content” companies. The majority of the revenues they generate from AdSense advertising appearing on websites other than Google search pages, go directly into the coffers of their publishing partners. It is a classic advertising sales representation business model. While I understand the thesis that they are in the “content business” and therefore could, in theory, purchase “content businesses” including magazines, with their billions, the logic falls apart when considering the opportunities Google has for making money with all publishers rather than competing with them.

Note: I will likely be proven wrong on this observation, but at least am willing to provide this post as a permalink for someone to refer to when saying, “I told you so.”