b-school, Blogging, Business, Economics, Economy, MBA, Thoughts

Google buys Feedburner: good news for information liquidity

It’s already news in TechCrunch: Google has paid $100 Million (in cash) for FeedBurner. Not bad for a 4-year-old start-up that raised $10 Million in two rounds.

See this brand? Now see Google in it

But that’s not what matters to me. I was wondering, does it make economic sense? Hardly anything that Google does doesn’t. But what does FeedBurner add to Google and how can that benefit us all?

For all those that might not know, RSS is a way to syndicate contents. It’s a standard that enables you to share information, usually news that may come from a news source. But you don’t have to worry about formats or anything because the content comes in a standardised format. That means you can read it your way. For example here you have this blog’s RSS feed.

the syndication family, sound familiar?

It’s a killer application, but it’s not that widely known. Some time ago, web portals used to build communities just by adding some news feeds, some contents, and some input and feedback from users. That was the seed to have a thriving community. It still is but, for how long will that model work?

With syndication, you choose your feeds and the way you read them. Such a simple technology lets you build your own community, with the people, blogs, feeds, news that you really care about. And that doesn’t happen in a web portal. It happens in your computer, letting you participate in many websites or blogs at the same time.

Instead of going somewhere to find things that interest you: let them come to you. That’s what I call information liquidity. Feedburner does that. Mixed information up, split it up into a lot of pieces and gave everyone his piece. Now Google can too. With Google’s bet for Feedburner, old underrated RSS it is going to get hotter.

back to basics: the quantity theory of money

and the equation of exchange in its simple form

Reminds me of the quantity theory of money. Just like money, the more that the information moves (VT), the more the real value of added transactions (T). That means more chances of information businesses making economic sense.


2 thoughts on “Google buys Feedburner: good news for information liquidity

  1. “… $100 Million (in cash) …” 😯
    I’m a newbie in blogging, but I smell the potential of that fusion (knowing some about google’s capabilities).

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