The Tech Giants Have Become Too Big to Fail

The Tech Giants Have Become Too Big to Fail
AP Photo/Marcio Jose Sanchez, File

“Don’t be evil” was the mantra of the co-founders of Google, Sergey Brin and Larry Page, the graduate students who, in the late 1990s, had invented a groundbreaking way of searching the web. At the time, one of the things the duo believed to be evil was advertising. There’s no reason to doubt their initial sincerity on this matter, but when the slogan was included in the prospectus for their company’s flotation in 2004 one began to wonder what they were smoking. Were they really naive enough to believe that one could run a public company on a policy of ethical purity?

The problem was that purity requires a business model to support it and in 2000 the venture capitalists who had invested in Google pointed out to the boys that they didn’t have one. So they invented a model that involved harvesting users’ data to enable targeted advertising. And in the four years between that capitulation to reality and the flotation, Google’s revenues increased by nearly 3,590%. That kind of money talks.

Read Full Article »


Comment
Show comments Hide Comments


Related Articles