Re:Ohio sues Google, seeks to declare the internet company a...
by gumby on Tuesday June 08, 2021 @05:34PM
(#27441184)
> Google Cloud is big enough to be significant in terms of revenue, but AFAIK is only maybe breaking even in terms of profit.
Google cloud gotten profitable enough that they only spent $5B to earn $4B in revenue last quarter. After a dozen years that's the best ever (classic case of monopoly leverage to get into a different market).
Advertising is "only" 81% of revenue but almost 100% of profit.
Some other commenters have proposed that properties like YT and Android drive ad traffic but when I looked at the last 10Q it looked like YT was about 10% of ad revenues. I believe Android is a net loss but worth it in that it's an offset to reduce payments to Apple. But I just skimmed the filing because this is just an HN comment.
Re:Ohio sues Google, seeks to declare the internet company a...
by jonplackett on Wednesday June 09, 2021 @04:13AM
(#27445459)
Isn’t the problem also that they use the massive profit in search to go into other areas and distort the market there by being able to subsidise losses with search income?
It would also stop them favouring their own products in search results
Google Cloud is big enough to be significant in terms of revenue, but AFAIK is only maybe breaking even in terms of profit. If you break up Alphabet into 26 or more different companies, you haven't broken up the monolith into non-problematic small companies 1/26th the size of the original, you've got 25 irrelevant companies and then one subsidiary that gets Ads which is almost as big as the original. Google even says as much in their financial statements, most of those listed companies are listed as 'other bets' and are a tiny fraction of the main line item that represents ads.