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Google’s Frommer’s Deal: Savvy Move?

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  • Description

    Rick Summer, Morningstar analyst, breaks down Google’s acquisition of Frommer’s content.

  • Duration 3:01
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This transcript is automatically generated

Two point 69%.

Up seventeen bucks and more on the -- the search giant making big news today including its.

Purchase of -- travel guides for an undisclosed.

Amount -- here to talk about that.

And so much -- Morningstar analyst Rick summer break.

Thanks for joining -- does this acquisition makes sense for Google.

Well if you look at -- -- recent acquisition and Zagat has certainly files and those same lines.

It did seem to figure out what once again whether this is often served her defense -- -- nature.

Looking to help organize information certainly now they're -- consumers are very specific information which would be.

You know from us from -- travel information her at this point.

So what is the point you say can be a defensive -- does it target the competitors such as I don't know Yelp Clinton trip advisor visit trying to -- -- market Chad little bit.

I I think so I think that you have a couple of things need to consider you know one when people are going to look for information used to be we always went to google.com.

Increase -- there's been a vertical focus EC folks like Yelp.

Targeting restaurants and other local businesses -- people searching for information -- going directly to trip advisor as well.

This is a defensive nature to say that well look you can come directly to Google to get that information.

But -- is when you think about that next leg of mobile and we look at the success that Yelp has had at least in traffic on their mobile application.

Clearly this'll help to bolster and our mind.

Bolster Google's suite of applications for mobility as well it bought zag of last year was that a good -- is that being successful.

And it's cheap and certainly too early to tell of it's been successful now they have the good fortune of a lot of these things appearing to be rounding errors but.

You know at some point -- have to really coalesce -- -- -- real business.

When you look at what they're doing in mobile and whether -- places in Google local and really trying to wrap things into a good mobile experience.

Once again too early to tell but I think that patience has been a good a good proxy for Google in the past and the extent they are patient.

Writing real content to help steer users can be great.

I'm very quickly.

Rick wanna mention that Google announcing laying off what 20% of the work -- of Motorola mobility shutting down a third of Motorola's offices around the world.

-- pay twelve and a half billion for this stock last year I mean is this -- was it a good move resist turning out to be a bit of problem for them.

So they feel it necessary move on and one of the things we really addresses we flashback a year ago analyst for property was a huge concern.

And I think that there has been an arms race and there's -- -- neutrality.

Partly as a result of that acquisition.

And terms of the handset business by itself that's not a great businesses not -- that we lob.

Google's taking it seriously they're gonna try and manager for profits -- right we still don't have a great long term concern -- and optimism about that business.

All right good stuff lots of talk about Rick has summer of -- -- thank you so much for joining us appreciate it.

-- -- -- go to the movies.

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