The New York Times > Technology > Google Acquires Urchin Software

The New York Times > Technology > Google Acquires Urchin Software

In the big Cisco run, Cisco had the best technology. Whenever a small company created a new technology Cisco was quick to buy it. Cisco had a run of maybe 15 years of incredible growth. Google, Yahoo and MSFT continue to buy companies that will help these firms stay in the leadership pack. The owners of the companies that are lucky enough to be bought cash-in big time. The competitors not purchased are left to suffer trying to compete against the three giants of the industry.

Other "major" players are trying to make it the big four instead of the big three. Interactive Corp, Cendant, AOL, HP and others continue to buy companies to break into the "big circle". Google purchased Picasa, HP paid dearly for Snapfish and YHOO purchased flkr. Of course, ADBE, Kodak and others offer photo sites. Many of these purchases are designed to integrate services such that a person stays with the one provider. The Urchin Software purchase by Google will give Google advertisers the ability to maximize their coverage at the lowest costs. This is a good service that is a natural addition to Google.
Some investors will buy little internet companies in the hope of hitting the next take-over. I prefer to own the solid companies in the leading positions. Many folks are quick to point out several other search companies have lost out along the way. This is true but YHOO and GOOG have commanding positions. EBay and AOL have leadership products that are not going to go away quietly. Portfolio management is about managing risks. If one takes no risk, one makes no profit. The key is to take risks that have a high probability of paying off. Long-term investors in GOOG, YHOO, TWX, and EBay will do well. Ownership in internet stocks should be tempered with ownership in other areas