What a month for the rumor mill! Initially we heard that Google was to buy Plaxo for $200M. Now the story has changed - Comcast is to acquire Plaxo for $175M. But then again......these are only "close sources" and not the official release from either company. Despite the fact that this merger talk is only conjecture at this point, the Google/Plaxo possibility does cause one to raise their eyebrow.
There are several good reasons WHY Google should buy Plaxo:
- Google's mission of amassing all the world's information means just that - ALL the world's information. The next step in amassing information is to scrub it. Plaxo's users rely on the Plaxo software to ensure that the contact information of their social network is up to date. This behavior is a postive, reinforcing loop that ensures that Plaxo has scrubbed, squeaky clean data on millions of people.
- Google recently launched their Social Graph API and OpenSocial initiative of which the goal is to "make information about the public connections between people on the Web easily available and useful to developers." Although Plaxo is a participant in Google's OpenSocial initiative, it is not yet using the Social Graph API. Imagine if Google had the direct ability to overlay contact info for millions of Plaxo users on top of information gathered through the Social Graph API? The possibilities for marketers are endless.
- The combined output of a Plaxo/Social Graph API would create a new enterprise-grade web service product offering for Google. There are many industry examples where companies are challenged to maintain accurate customer profile records. Travel and hospitality is a prime example. Several travel industry groups have tried for years to create common file formats which can be shared between hotels, airlines and car rental agencies. Imagine if travel companies had a way to augment these common file formats with the scrubbed profile data germinating from a Plaxo/Google web service offering? This would be a boon for customer/guest service, a reduction in IT operating costs, and a boost in marketing/guest loyalty program effectiveness.
If a Google/Plaxo deal were to actually materialize, another likely acquisition would be a credit bureau, such as Experian, TransUnion or Equifax. Once again, imagine the possibilities! Let's say that Experian were to overlay the credit scores of your social network on top of the Plaxo/OpenSocial web service. Experian would be able to offer a new form of risk propensity analytics to any offerer of credit.
Hmmm........even if Plaxo is out of the question, are there other possiblities that Google should consider? Spoke Software? LinkedIn?
