GOOGLE CASE... Google Inc. by Benjamin Edelman; Thomas R$.$ Eisenmann

The case 'Google Inc.$\text{'}$ describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation. It reviews Google's recent strategic initiatives and the threats they pose to Yahoo!, Microsoft, and others. It also asks what Google should do next. One option is to stay focused on the company's core competence, i$.$e$.,$ developing superior search solutions and monetizing them through targeted advertising. Another option is to branch into new arenas; for example, build Google into a portal like Yahoo! or MSN; extend Google's role in e$-$commerce beyond search, to encompass a more active role as an intermediary $($like eBay$)$ facilitating transactions; or challenge Microsoft's position on the PC desktop by developing software to compete with Office and Windows. Question $1)$ In renewing its deal with AOL, could Google afford to pay AOL more than $100\%$ of the revenue generated from AOL searches? How did Microsoft$$s maximum affordable bid for AOL$$s search traffic compare to Google$$s$?$