Ben Gilbert: evaluation

Transcript context

…Yup. Since we’re going off of the data that Oracle opened up in this lawsuit, it's reported that they had $31 billion of revenue per year from Android. So we’ve seen the estimate that $15 billion of that is from mobile search revenue between iOS and Android largely on, I guess so it would be about $12 billion at that because it’s all from Android. Then you have the rest of that is, you know, there’s some amount from the actual phones that they’re selling because Google sells the Nexus phones. But then a lot of that, that top line, $10 to $15 billion of it is from the Google Play Store. And Google keeps 30 percent of that. So let’s say $3 to $4 billion a year is made from the actual Play Store. So that in itself much like how the App Store for Apple is a great business. You know, compared to their other businesses, it’s not insane but that in itself on a $50 million acquisition would be great. But the thing that I think Android really did is ensure that Google was safe for the next decade or two as the world changed out from under them and they were at great risk of losing access to their customers. They engineered a strategy here where they not only went and got a lot of those customers kind of back and made sure that as they transition to mobile, they stayed with direct access to Google and actually even tighter since they’re never on the operating system on desktop, but really where the primary place to go for the developing world as people came online for the first time. So I think Google’s core asset marches on and is well protected and this is an A+. Yeah. For me, the question about grading this is a question whether this is an A or an A+. No doubt this was $50 million for something that is achieved even though it didn’t start this way, but over time achieved everything that we’ve talked about in this episode – for Google, absolutely fantastic. As David Lawee said, “Google’s best deal ever.”…

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