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January 20, 2006



Can't tell you why they did a deal so heavily dependent on an earn-out, but I can take a guess as to how the exact number came out. To understand Google, you have to understand their dogma of making everything measurable and accountable. If they can use math to make a decision, they do so. Math informs their AdWords and AdSense products in the form of Quality Score, and continues to drive their systems in their Local and core search products. I wonder if they didn't put the valuation into a "Google-specific" algorythm to come up with the number. I'm only half-joking.

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