If the judge orders Google to sell Chrome, how much is it worth? 20 billion
Having Chrome is crucial for Google's advertising business. In the third quarter of this year, Google's advertising revenue accounted for nearly 75% of the parent company's total revenue, with search business revenue making up 75% of advertising revenue. Media reports indicate that antitrust officials have also considered more severe options: forcing Google to sell Android
If the judge agrees to the U.S. Department of Justice's proposal to force Google's parent company Alphabet Inc. to sell its browser Chrome, the business could be valued at up to $20 billion.
Bloomberg Industry Research analyst Mandeep Singh stated that if the sale proceeds, given that Chrome has over 3 billion monthly active users, the business would be worth "at least $15-20 billion."
On Monday after U.S. stock market hours, Bloomberg reported that it learned U.S. Department of Justice antitrust officials decided to recommend to Judge Amit Mehta, who ruled in August that Google illegally monopolized the search market, to force Google to sell Chrome. Additionally, antitrust officials are also seeking to propose data licensing requirements and remedies related to artificial intelligence (AI) and the Android smartphone operating system to break Google's monopoly.
Wall Street Insight later mentioned that if the news is true and Judge Mehta accepts the proposal, it could reshape the online search market and the AI industry.
This would not only be a historically heavy blow to Google but would also mark the most aggressive crackdown by the U.S. government on tech companies since it sought to break up Microsoft two decades ago without success.
According to web traffic analysis service StatCounter, Chrome holds about 61% of the U.S. browser market share and is also the most widely used browser globally. Moreover, owning Chrome is crucial for Google's advertising business, as Google can view the activities of logged-in users and use this data to more effectively target ads, which are the source of most of Google's revenue. Google also uses the Chrome browser to direct users to its flagship AI product, Gemini.
The latest financial report released at the end of last month shows that in the third quarter of this year, Google's advertising revenue was approximately $65.85 billion, accounting for 74.6% of the total revenue of its parent company Alphabet for the quarter. In Google's advertising business, revenue from Google Search and other businesses reached $49.39 billion in the third quarter, accounting for 75% of advertising revenue.
Revenue from Google Search has slowed for two consecutive quarters, indicating the challenges facing Google's advertising business. Market research firm eMarketer predicts that due to intensified competition from rivals like Amazon, Google's share of the search advertising market will fall below 50% next year.
However, selling Chrome may still be a relatively less severe punishment option. According to Bloomberg's report on Monday, antitrust officials had previously considered forcing Google to sell the Android system.
After the news broke on Monday that the Department of Justice is seeking to sell Chrome, Google's Vice President of Regulatory Affairs Lee-Anne Mulholland stated in a statement: "The (U.S.) Department of Justice continues to pursue an aggressive agenda that far exceeds the legal issues of this case. Government interference in this way will harm consumers, developers, and undermine the U.S. at a time when it most needs technological leadership."The Department of Justice declined to comment on some media requests regarding the aforementioned report on Monday.
On Tuesday, Alphabet's stock price initially fell nearly 1%, but later rebounded from the impact of the Chrome sale report, turning positive in the morning session and reaching a daily high with an intraday increase of 1.7%.
