Searching for profit
: Media Savvy rings the warning bell for Overture:
Despite the fact that Overture’s net profit margin has dropped from 20% to 5% and their quarterly net income has dropped from $30 million to $5 million, they’re on a buying spree. Overture spent $400 million to buy a couple of search companies, one failed and and one for people too cool to google.
Hmmm. It’s an Idealab company, does that give you any hints about its spending DNA? The result of this shakeout could be that Overture buys everybody but Google and Google is the one left standing.