Thursday, 06 August, 2009 06:15

Age: 357 days

What is Google

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Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, when they were both PhD students at Stanford University in California. They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page. Their search engine was originally nicknamed "BackRub" because the system checked backlinks to estimate the importance of a site. A small search engine called Rankdex was already exploring a similar strategy.

Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. Originally, the search engine used the Stanford University website with the domain google.stanford.edu. The domain google.com was registered on 15 September 1997, and the company was incorporated as Google Inc. on 4 September 1998 at a friend's garage in Menlo Park, California. The total initial investment raised for the new company amounted to almost $1.1 million, including a $100,000 check by Andy Bechtolsheim, one of the founders of Sun Microsystems.

In March 1999, the company moved into offices in Palo Alto, home to several other noted Silicon Valley technology startups. After quickly outgrowing two other sites, the company leased a complex of buildings in Mountain View at 1600 Amphitheatre Parkway from Silicon Graphics (SGI) in 2003. The company has remained at this location ever since, and the complex has since come to be known as the Googleplex (a play on the word googolplex). In 2006, Google bought the property from SGI for $319 million.

The Google search engine attracted a loyal following among a growing number of Internet users, who liked its simple design and useful results. In 2000, Google began selling advertisements associated with search keywords. The ads were text-based to maintain an uncluttered page design and to maximize page loading speed. Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at 5 cents per click. This model of selling keyword advertising was pioneered by Goto.com (later renamed Overture Services, before being acquired by Yahoo! and rebranded as Yahoo! Search Marketing). Goto.com was an Idealab spin off created by Bill Gross, and was the first company to successfully provide a pay-for-placement search service. Overture Services later sued Google over alleged infringements of Overture's pay-per-click and bidding patents by Google's AdWords service. The case was settled out of court, with Google agreeing to issue shares of common stock to Yahoo! in exchange for a perpetual license. Thus, while many of its dot-com rivals failed in the new Internet marketplace, Google quietly rose in stature while generating revenue.

The name "Google" originated from a common misspelling of the word "googol", which refers to 10100, the number represented by a 1 followed by one hundred zeros. Having found its way increasingly into everyday language, the verb "google", was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning "to use the Google search engine to obtain information on the Internet."

A patent describing part of the Google ranking mechanism (PageRank) was granted on 4 September 2001. The patent was officially assigned to Stanford University and lists Lawrence Page as the inventor.

Financing and initial public offering

The first funding for Google as a company was secured in August 1998, in the form of a $100,000 contribution from Andy Bechtolsheim, co-founder of Sun Microsystems, given to a corporation which did not yet exist.

On June 7, 1999 a round of funding of $25 million was announced, with the major investors being rival venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital.

The Google IPO took place on 19 August 2004. 19,605,052 shares were offered at a price of $85 per share. Of that, 14,142,135 (another mathematical reference as √2 ? 1.4142135) were floated by Google, and the remaining 5,462,917 were offered by existing stockholders. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. The vast majority of the 271 million shares remained under the control of Google. Many Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited from the IPO because it owned 8.4 million shares of Google as of 9 August 2004, ten days before the IPO.

The stock performance of Google after its first IPO launch has gone well, with shares hitting $700 for the first time on 31 October 2007, due to strong sales and earnings in the advertising market, as well as the release of new features such as the desktop search function and its iGoogle personalized home page. The surge in stock price is fueled primarily by individual investors, as opposed to large institutional investors and mutual funds.

The company is listed on the NASDAQ stock exchange under the ticker symbol GOOG and under the London Stock Exchange under the ticker symbol GGEA.

Growth

While the primary business interest is in the web content arena, Google has begun experimenting with other markets, such as radio and print publications. On 17 January 2006, Google announced that its purchase of a radio advertising company "dMarc", which provides an automated system that allows companies to advertise on the radio. This will allow Google to combine two niche advertising media-the Internet and radio-with Google's ability to laser-focus on the tastes of consumers. Google has also begun an experiment in selling advertisements from its advertisers in offline newspapers and magazines, with select advertisements in the Chicago Sun-Times. They have been filling unsold space in the newspaper that would have normally been used for in-house advertisements.

Acquisitions

Since 2001, Google has acquired several small start-up companies.

In 2004, Google acquired a company called Keyhole, Inc., which developed a product called Earth Viewer which was renamed in 2005 to Google Earth.

In February 2006, software company Adaptive Path sold Measure Map, a weblog statistics application, to Google. Registration to the service has since been temporarily disabled. The last update regarding the future of Measure Map was made on 6 April 2006 and outlined many of the known issues of the service.

In late 2006, Google bought the online video site YouTube for $1.65 billion in stock. Shortly after, on 31 October 2006, Google announced that it had also acquired JotSpot, a developer of wiki technology for collaborative Web sites.

On 13 April 2007, Google reached an agreement to acquire DoubleClick. Google agreed to buy the company for $3.1 billion.

On 2 July 2007, Google purchased GrandCentral. Google agreed to buy the company for $50 million.

On 9 July 2007, Google announced that it had signed a definitive agreement to acquire enterprise messaging security and compliance company Postini.

Partnerships

In 2005, Google entered into partnerships with other companies and government agencies to improve production and services. Google announced a partnership with NASA Ames Research Center to build up 1,000,000 square feet (93,000 m2) of offices and work on research projects involving large-scale data management, nanotechnology, distributed computing, and the entrepreneurial space industry. Google also entered into a partnership with Sun Microsystems in October to help share and distribute each other's technologies. The company entered into a partnership with AOL of Time Warner, to enhance each other's video search services.

The same year, the company became a major financial investor of the new .mobi top-level domain for mobile devices, in conjunction with several other companies, including Microsoft, Nokia, and Ericsson among others. In September 2007, Google launched, "Adsense for Mobile", a service for its publishing partners which provides the ability to monetize their mobile websites through the targeted placement of mobile text ads, and acquired the mobile social networking site, Zingku.mobi, to "provide people worldwide with direct access to Google applications, and ultimately the information they want and need, right from their mobile devices."

In 2006, Google and Fox Interactive Media of News Corp. entered into a $900 million agreement to provide search and advertising on the popular social networking site, MySpace.

Google has developed a partnership with GeoEye to launch a satellite providing Google with high-resolution (0.41 m monochrome, 1.65 m color) imagery for Google Earth. The satellite was launched from Vandenberg Air Force Base on 6 September 2008.

In 2008, Google announced that it was hosting an archive of Life magazine's photographs, as part of a joint effort. Some of the images in the archive were never published in the magazine. The photos are watermarked and originally had copyright notices posted on all photos, regardless of public domain status.

Source: The Wiki.

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