Google heralds Android buy as 'best deal ever'

by Sarah Griffiths on 28 October 2010, 11:39

Tags: Google (NASDAQ:GOOG)

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Future focus

Meanwhile, despite the success of Android, Google is not resting on its laurels and is reportedly focusing its efforts on Google TV as well as snapping up a pad in New York.

The New York Post has reported that Google is close to buying the massive building it currently rents in central New York for a cool $2bn...although it is thought it could have fetched double that before the recession hit.

The purchase would reportedly make Google the proud owner of Manhattan's third biggest building by square footage as the 18-story giant includes over 3m square foot and covers almost a whole block. 

Presently, Google reportedly rents about a fifth of the building, which it shares with Nike and Armani and it is not known whether it wants to increase its operations in the big apple or become a landlord.

The search giant has been doing a bit of internal moving too, shifting its Google TV branch to its YouTube division, according to The San Francisco Chronicle.

"Just like any rapidly growing organization, it is important for YouTube to evolve and grow in order to ensure future success," a Google spokesperson reportedly said.

It is not thought the move is in response to problems Google has had with several American TV heavyweights that blocked access to their websites, stopping Google TV owners accessing popular shows.

One anonymous network exec told the newspaper: "Right now we don't know the costs versus the benefits, because Google hasn't done a good job, to tell you the truth, of explaining it. We don't know if there's a viable business model."

Cable companies are thought to be particularly concerned that people buying Google TV and similar set top boxes to access IPTV will cancel their cable subscription, but then again most shows can be access for free online.

Ross Rubin, director of industry analysis at the NPD Group reportedly said: "The idea is that on demand programming on the PC is complementary to a core cable TV offering, but bringing that content back onto the big screen makes it more directly competitive."

Meanwhile an analyst at Forrester research told the newspaper that consumers are already watching tonnes of shows on their TVs by connecting their PC.



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