June 8, 2005

Market value makes Google largest media company

by brian_turner

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Google, the Internet search company, has become the world’s largest media company based on stock market value, after only 10 months of trading as a public company.

The company’s shares achieved record levels on the New York markets on Tuesday, valuing it at $80bn (£44bn) and placing it ahead of rival Time Warner, which is valued at $78bn.

The valuation was achieved even though Google’s annual sales total only $3.2bn, compared to Time Warner’s $42bn sales figure.

While some analysts believe that Google’s shares are now overpriced, echoing the high valuations seen during the internet boom of the late 1990s, others maintain that the high stock value reflects the company’s future earning potential and think that shares could increase even further.

Google gains most of its revenues from the sale of advertising on its main search engine page.

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