3 ms·

I read it as Microsoft paid a million dollars and will pay 5% of what Google pays. I dislike Microsoft as much as the next guy, but it seems like they believed

I read it as Microsoft paid a million dollars and will pay 5% of what Google pays. I dislike Microsoft as much as the next guy, but it seems like they believed the patent would win in court and wanted the cheapest way out.

SilkRoadie 13y ago
This is it, not sure how you could read this another way. When reading the article it hit me that this was a great bit of business from Microsoft. A million dollars isn't much for MS to pay to make this go away... and then only paying 5% of Google will be forced to pay if they lose in court.. Microsoft's legal advisor must be happy with himself today
- pavanky 13y ago
  Well I don't see how it is a Win for MS when their ad revenue is ~3% that of Google. In a sense, aren't they paying more ?
  - chronic25 13y ago
    Considering MS holds 30% of all search volume, this is a win for them.
  - tanzam75 13y ago
    > Well I don't see how it is a Win for MS when their ad revenue is ~3% that of Google. In a sense, aren't they paying more ? How do you figure? Microsoft earned $3.2 billion in the Online Services division in fiscal year 2013. According to Microsoft's annual report, advertising accounted for "nearly all of" that division's revenues. $3.2 billion is about 5.6% of Google's trailing 12 months revenues of $57 billion. Subtract out Motorola, and it's about 6% of Google's ad revenues. What's more, the settlement locks in Microsoft's liability at 5% of Google's. If Microsoft were to grow its share vs. Google, then it would get to pay less than the proportional amount.
    - 1stop 13y ago
      But if google grows it's share... microsoft pays more. ... Actually, could google buy vringo, then just get money off MS?
    - pavanky 13y ago
      I was using these(http://www.emarketer.com/Article/Microsoft-Takes-Small-Share-of-US-Search-Ad-Revenues/1009939 http://www.emarketer.com/Article/Microsoft-Takes-Small-Share...) numbers for reference. More specifically the second table.

SilkRoadie 13y ago

This is it, not sure how you could read this another way. When reading the article it hit me that this was a great bit of business from Microsoft. A million dollars isn't much for MS to pay to make this go away... and then only paying 5% of Google will be forced to pay if they lose in court.. Microsoft's legal advisor must be happy with himself today

pavanky 13y ago
Well I don't see how it is a Win for MS when their ad revenue is ~3% that of Google. In a sense, aren't they paying more ?
- chronic25 13y ago
  Considering MS holds 30% of all search volume, this is a win for them.
- tanzam75 13y ago
  > Well I don't see how it is a Win for MS when their ad revenue is ~3% that of Google. In a sense, aren't they paying more ? How do you figure? Microsoft earned $3.2 billion in the Online Services division in fiscal year 2013. According to Microsoft's annual report, advertising accounted for "nearly all of" that division's revenues. $3.2 billion is about 5.6% of Google's trailing 12 months revenues of $57 billion. Subtract out Motorola, and it's about 6% of Google's ad revenues. What's more, the settlement locks in Microsoft's liability at 5% of Google's. If Microsoft were to grow its share vs. Google, then it would get to pay less than the proportional amount.
  - 1stop 13y ago
    But if google grows it's share... microsoft pays more. ... Actually, could google buy vringo, then just get money off MS?
  - pavanky 13y ago
    I was using these(http://www.emarketer.com/Article/Microsoft-Takes-Small-Share-of-US-Search-Ad-Revenues/1009939 http://www.emarketer.com/Article/Microsoft-Takes-Small-Share...) numbers for reference. More specifically the second table.