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Am I crazy or are the people saying that getting the headline mixed up? Google is the one paying Apple fifteen billion dollars here, not the other way around. W
by fshbbdssbbgdd 5y ago
Am I crazy or are the people saying that getting the headline mixed up? Google is the one paying Apple fifteen billion dollars here, not the other way around. Why would Apple want off that gravy train? I’m sure they could make some search engine, but they’d have to be better than Google at monetizing it for it to be worth the effort.
- qeternity 5y agoI think the argument goes: Google is paying a massive $15B (or ca. 15% of Apple's profits) AND they are only doing that because there is more than $15B in value to them. So if default iOS search has value in excess of $15B, Apple should just build their own and capture all of that value. It's not an argument I agree with, and not one I think they will pursue.
- MR4D 5y agoApple's P/E ratio is roughly 29. So, if you assume that the $15bn is pretty much all profit (for simplicity here remember), then the value of that for AAPL is roughly $35bn in market cap. So it takes a really good reason to kick out Google from this situation.
- vineyardmike 5y ago> So it takes a really good reason to kick out Google from this situation. Yes. The argument is that google makes more than 15b off that position, so the income has to be worth it by definition. Of course, apple won't likely monetize it as well, so it'll be hard to justify that.
- qeternity 5y ago> Apple's P/E ratio is roughly 29. So, if you assume that the $15bn is pretty much all profit (for simplicity here remember), then the value of that for AAPL is roughly $35bn in market cap. Not sure where you get $35B from. 15B * 29 = $435B
- MR4D 5y agoTypo. The $ was supposed to be 4. Thanks for catching that
- nevermindiguess 5y agoIf your employer is paying you 250k a year you shod definitely build something like this business and capture all that value!)