Does Google Expect Quick Cash from Dell Deal?
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After last weeks final consummation of the long-rumored partnership between Google and Dell, investors want to know: when should they expect the baby?
How long till the deal delivers cash?
As previously reported by internetnews.com, Dell agreed to preload Google Desktop and Toolbar on its PCs, as well as add Google Search to the Internet Explorer side pane. A Dell spokesman said systems pre-loaded with Google software are already shipping.
The two companies will also offer a co-branded homepage, which new Dell customers will default to during their first visit to the Web.
During an investors' conference call yesterday, Google CEO Eric Schmidt voiced his enthusiasm for the partnership.
"The primary motivation of the Dell deal was customer satisfactionm," Schmidt said. "We believe that this can really augment and extend that."
Investors were pleased that Schmidt was pleased. But they still wanted to know, when will the deal yield cash?
Finally, Google Senior Vice President Jonathan Rosenberg offered an answer.
"Clearly the Dell deal spans out several years," Rosenberg told the investors on the call. "It's a multiyear deal and it will certainly be cash positive over the course of the transaction."
It's also not known how much Google is paying to have its software placed on Dell's much-valued desktop. It's believed the two companies will share search-related ad revenue.
But Google's partnership with Dell isn't only about immediate cash, Schmidt noted.
"I just want to add that the agreement includes Google Search in the Internet Explorer side pane," Schmidt told the investors.
Earlier this month, Google complained to the Department of Justice about Microsoft'
Schmidt was careful to say that the Dell deal was not a response to Microsoft's move, but he did repeat his concern.
"We want to make sure the power of Windows is used in a correct and legally appropriate way."