Seeking Alpha

Google ends deal with Babylon amid changing policies; Perion, AVG lower

  • Perion (PERI -10.7%) and AVG (AVG -12.2%), both of whom depend heavily on search toolbar deals to monetize freely-distributed apps/services, are selling off after Israeli translation software vendor Babylon announced Google (GOOG -0.4%) is ending a search toolbar deal. Babylon shares finished down 62% in Tel Aviv.
  • The toolbars bundled by companies such as Babylon, Perion, and AVG have often been criticized as "foistware" that users wind up unintentionally installing, and sometimes have trouble removing. However, Babylon has been viewed as a worse offender than many.
  • Google, meanwhile, has been willing to sacrifice ad revenue this year by enforcing stricter policy terms, with the goal of creating a better user experience. Thanks to policy changes, Google's ad network revenue rose only 1% Y/Y in Q3 and 7% in Q2; that compares with 22% and 18% growth, respectively, for revenue coming from Google sites.
  • Chardan is defending Perion: The firm points out both Perion and reverse merger partner Conduit have two-year deals in place with Google, and that Perion also has a 4-year deal (inked earlier this year) with Yahoo. Chardan also declares Perion hasn't engaged in the "questionable practices" Babylon took part in, and has conducted better product testing/optimization.
Comments (3)
  • leechy
    , contributor
    Comments (97) | Send Message
     
    nice move from Google. Thx.
    30 Oct 2013, 12:58 PM Reply Like
  • shakazoid
    , contributor
    Comments (146) | Send Message
     
    Ditto. I hate all these annoying tag along addons that fools naive computer users into installing unintended things.
    30 Oct 2013, 01:24 PM Reply Like
  • ShoomKloom
    , contributor
    Comments (2) | Send Message
     
    As a former employee at IncrediMail (later Perion) I can attest that we always made a point of not doing things behind the user's back and making it very easy to remove our application.
    Hopefully the market will understand the difference between Perion and the likes of Babylon
    4 Nov 2013, 12:22 PM Reply Like
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