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Why Are Companies Eager to Acquire Chrome?

Photo credit: www.theverge.com

Chrome may eventually be on the market if the U.S. Department of Justice succeeds in its remedies trial for US v. Google. Reports indicate that several interested parties are already preparing to approach Google.

However, any sale is unlikely to occur in the near future. The remedies trial is ongoing, and a ruling is not anticipated soon. Furthermore, Google has announced plans to appeal, which could delay the process significantly and may even overturn any decision that could force the company to divest its browser.

Assuming Google is required to sell Chrome, the question arises: who would be interested, and what drives this interest? Insights from the remedies trial are beginning to shed light on these queries.

To understand the appeal, consider the strategic advantage of owning a browser. It serves as an excellent vehicle for promoting a proprietary search engine, particularly one as popular as Chrome. Given that Google developed Chrome, it is logical for them to set Google Search as the default search engine. Chrome commands around two-thirds of the global browser market share, meaning that a vast audience is using Google Search simply because it comes pre-set in the browser.

The allure of acquiring Chrome extends beyond merely enhancing search engine visibility. A browser with such extensive user engagement provides a platform for companies to promote a myriad of products and services. Gaining ownership of Chrome would allow a new player, especially in emerging fields like artificial intelligence, to present their offerings to billions of users. This would be particularly advantageous for companies looking to challenge Google’s current dominance.

Here are some potential buyers who have shown interest:

Yahoo is not the only company estimating a potential valuation in the range of nine figures; DuckDuckGo’s CEO, Gabriel Weinberg, provided a “back-of-the-envelope” estimate suggesting Chrome could be valued at up to $50 billion, as reported by Bloomberg. Thus, any company that manages to acquire Chrome may need to prepare for a substantial financial commitment.

Nonetheless, such a significant investment might be justifiable. The new owner of Chrome would instantly inherit a platform with billions of users. At a time when Google appears somewhat vulnerable, a competitor seizing control of its browser could deliver a considerable blow to its business model.

Source
www.theverge.com

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