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1、9-910-036REV.FEBRUARY12,2010BENJAMINEDELMANTHOMASR.EISENMANNGoogleInc.Google’smissionistoorganizetheworld’sinformationandmakeituniversallyaccessibleanduseful.—Google’smissionstatementInJanuary2010,GooglelaunchedtheNexusOnemobiledevice—aneleganttouch-screenphonethataddedcompre
2、hensivevoicerecognitiontoreducedependenceonkeyboard-styletextentry.Sincethefallof2008,Google’sAndroidoperatingsystemhadpoweredvariousmobilephones.ButGooglehadextendeditsrolewithNexusOne:Googledesignedthephoneandplannedtosellitdirectlytoconsumers.WasthereanylimittoGoogle’saspi
3、rations?Google,basedinMountainView,California,hadgrossrevenuesof$21.2billionandanoperatingincomeof$5.5billionin2008.Asofyear-end2008,thecompanyhad20,164emplooyeesandcashandequivalentsof$8.7billion.(Exhibit1showsGooglefinancialsfrom1999–2008.)Foundedin1999,thecompanycompletedi
4、tsIPOinAugust2004at$85pershare.Google’ssharepriceexceeded$600inJanuary2010,givingthecompanya$189billionmarketvalue.Meanwhile,Google.comenjoyeda65.6%shareofallU.S.searchesinNovember2009;Yahoo.com,itsclosestrival,hadjust17.5%.1(Exhibit2outlinestrendsinsearchenginemarketshare.)O
5、utsidetheUnitedStates,Google’sleadwasevenlarger,exceedinga90%shareofsearchqueriesinnumerouscountries.(Exhibit3reportsmarketsharesbycountry.)SinceitsIPO,Googlehadlaunchedaflurryofproductsthatexpandeditsdomainbeyondwebsearch.TheseincludedGmail,GoogleMaps,GoogleBooks,GoogleFinan
6、ce,GooogleDocs,GoogleCalendar,GoogleCheckout,andmore.AcquisitionsofYouTubeandDoubleClickhadexpandedGoogle’spresenceinonlinevideoanddisplayadvertisinng.TheseinitiativesfueledspeculationaboutGoogle’sstrategicobjectives.ProductslikeGmailandFinance,alongwithpersonalizationfeature
7、sofferedonGoogle’shomepage,movedthecompanytowardportalslikeYahoo!andMicrosoft’sMSN.BookSearch,Maps,andCheckoutsuggestedthatGooglewasenterinngthetraditionalstrongholdsofe-commercegiantslikeeBayandAmazon.Finally,Google’sad-supportedsoftware,includingemail,calendaring,anddocumen
8、t-managementsystems,threatenedMicrosoft’sOfficeandWindowsofferings.T