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Microsoft announced its earnings for the fiscal quarter ending September 30, 2008. For them, it’s the first quarter of their fiscal year, while other companies go with the traditional calendar and call it their third quarter.

Their net income increased by 2%. This was due largely in part to XBox360, a gaming console which recently received a price slash.

It has been widely noted that Microsoft has a bunch of cash on hand, especially since they didn’t end up acquiring Yahoo after all (yet). MSFT was up .28 at the time of this post. Though with the markets as volatile as they are, that could change at any minute.

Here’s the press release:

Microsoft Reports Record First-Quarter Revenue
Thursday October 23, 4:10 pm ET
Revenue surpasses $15 billion with healthy sales of enterprise software and Xbox 360 consoles

REDMOND, Wash., Oct. 23 /PRNewswire-FirstCall/ — Microsoft Corp. today announced revenue of $15.06 billion for the fiscal quarter ended Sept. 30, 2008, a 9% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $6.00 billion, $4.37 billion and $0.48, respectively.

Microsoft showed particular strength in multiyear annuity sales, which grew more than 20% during the quarter from the combined businesses of Client, Microsoft Business Division and Server and Tools.

“Our customers are asking how they can save money and do more with less,” said Kevin Turner, chief operating officer at Microsoft. “Microsoft is uniquely positioned to help our customers save money through supplier consolidation, increased productivity, and a low total cost of ownership through the depth and breadth of our product portfolio and solutions.”

Microsoft continued to add to its product and services portfolio with innovative offerings such as Microsoft SQL Server 2008, Microsoft Hyper-V Server 2008 and the first service update to Microsoft Dynamics CRM Online.

“In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model,” said Chris Liddell, chief financial officer of Microsoft.

Business Outlook

Microsoft’s business outlook reflects a balance of risks and the likelihood of a continued economic slowdown. The trends seen late in the first-quarter are now forecasted to continue, whereas previous expectations were for the economy to improve in the second half of the fiscal year. In this economic environment, the company is focused on three main actions; working with customers to provide high value products at the lowest total overall cost of ownership, increasing focus on expense management and targeting investment into the highest priority strategic opportunities.

Microsoft management offers the following guidance for the quarter ending
Dec. 31, 2008:
— Revenue is expected to be in the range of $17.3 billion to
$17.8 billion.
— Operating income is expected to be in the range of $6.1 billion to
$6.4 billion.
— Diluted earnings per share are expected to be in the range of $0.51 to
$0.53.

Management offers the following guidance for the full fiscal year ending
June 30, 2009:
— Revenue is expected to be in the range of $64.9 billion to
$66.4 billion.
— Operating income is expected to be in the range of $24.4 billion to
$25.5 billion.
— Diluted earnings per share are expected to be in the range of $2.00 to
$2.10.

Liddell noted that “we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well.”

Webcast Details

Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with Chris Liddell, senior vice president and chief financial officer, Frank Brod, corporate vice president and chief accounting officer, and Bill Koefoed, general manager of Investor Relations, to discuss details of the company’s performance for the quarter and certain forward-looking information. The webcast will be available for replay through the close of business on Oct. 23, 2009.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT - News) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

— challenges to Microsoft’s business model;
— intense competition in all of Microsoft’s markets;
— Microsoft’s continued ability to protect its intellectual property
rights;
— claims that Microsoft has infringed the intellectual property rights
of others;
— the possibility of unauthorized disclosure of significant portions of
Microsoft’s source code;
— actual or perceived security vulnerabilities in Microsoft products
that could reduce revenue or lead to liability;
— government litigation and regulation affecting how Microsoft designs
and markets its products;
— Microsoft’s ability to attract and retain talented employees;
— delays in product development and related product release schedules;
— significant business investments that may not gain customer acceptance
and produce offsetting increases in revenue;
— changes in general economic conditions that affect our investment
portfolio or demand for computer hardware or software;
— adverse results in legal disputes;
— unanticipated tax liabilities;
— quality or supply problems in Microsoft’s consumer hardware or other
vertically integrated hardware and software products;
— impairment of goodwill or amortizable intangible assets causing a
charge to earnings;
— exposure to increased economic and regulatory uncertainties from
operating a global business;
— geopolitical conditions, natural disaster, cyberattack or other
catastrophic events disrupting Microsoft’s business;
— acquisitions and joint ventures that adversely affect the business;
— improper disclosure of personal data could result in liability and
harm to Microsoft’s reputation;
— outages and disruptions of online services if Microsoft fails to
maintain an adequate operations infrastructure;
— sales channel disruption, such as the bankruptcy of a major
distributor; and
— Microsoft’s ability to implement operating cost structures that align
with revenue growth.

For further information regarding risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations Web site at http://www.microsoft.com/msft.

All information in this release is as of Oct. 23, 2008. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Microsoft Corporation
Income Statements
(In millions, except per share amounts) (Unaudited)

Three Months Ended
September 30,
2008 2007

Revenue $15,061 $13,762
Operating expenses:
Cost of revenue 2,848 2,675
Research and development 2,283 1,837
Sales and marketing 3,044 2,683
General and administrative 887 718
Total operating expenses 9,062 7,913
Operating income 5,999 5,849
Other income (expense) (8) 367
Income before income taxes 5,991 6,216
Provision for income taxes 1,618 1,927
Net income $4,373 $4,289

Earnings per share:
Basic $0.48 $0.46
Diluted $0.48 $0.45

Weighted average shares outstanding:
Basic 9,084 9,380
Diluted 9,183 9,513

Cash dividends declared per common share $0.13 $0.11

Microsoft Corporation
Balance Sheets
(In millions)

September 30, June 30,
2008 2008 (1)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $9,004 $10,339
Short-term investments (including
securities pledged as
collateral of $1,011 and $2,491) 11,718 13,323
Total cash, cash equivalents, and
short-term investments 20,722 23,662
Accounts receivable, net of
allowance for doubtful accounts of
$168 and $153 9,535 13,589
Inventories 1,640 985
Deferred income taxes 1,974 2,017
Other 3,331 2,989
Total current assets 37,202 43,242
Property and equipment, net of
accumulated depreciation of $6,622
and $6,302 6,552 6,242
Equity and other investments 4,381 6,588
Goodwill 12,291 12,108
Intangible assets, net 1,899 1,973
Deferred income taxes 1,041 949
Other long-term assets 1,751 1,691
Total assets $65,117 $72,793

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $3,351 $4,034
Short-term debt 1,975 -
Accrued compensation 2,138 2,934
Income taxes 514 3,248
Short-term unearned revenue 11,815 13,397
Securities lending payable 1,070 2,614
Other 3,520 3,659
Total current liabilities 24,383 29,886
Long-term unearned revenue 1,662 1,900
Other long-term liabilities 5,478 4,721
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital -
shares authorized 24,000;
outstanding 8,977 and 9,151 61,655 62,849
Retained deficit, including
accumulated other comprehensive
income of $877 and $1,140 (28,061) (26,563)
Total stockholders’ equity 33,594 36,286
Total liabilities and
stockholders’ equity $65,117 $72,793

(1) Derived from audited financial statements

Microsoft Corporation
Cash Flows Statements
(In millions) (Unaudited)

Three Months Ended
September 30,
2008 2007
Operations
Net income $4,373 $4,289
Depreciation, amortization, and
other noncash items 585 435
Stock-based compensation expense 443 333
Net recognized losses (gains) on
investments and derivatives 36 (187)
Excess tax benefits from stock-
based payment arrangements (44) (69)
Deferred income taxes 376 357
Unearned revenue 4,186 3,821
Recognition of unearned revenue (6,044) (4,965)
Accounts receivable 3,985 2,806
Other current assets (558) (235)
Other long-term assets (116) (11)
Other current liabilities (4,552) (1,189)
Other long-term liabilities 700 493
Net cash from operations 3,370 5,878
Financing
Proceeds from short-term debt 1,975 -
Common stock issued 228 646
Common stock repurchased (6,493) (2,930)
Common stock cash dividends (998) (938)
Excess tax benefits from stock-
based payment arrangements 44 69
Net cash used in financing (5,244) (3,153)
Investing
Additions to property and
equipment (778) (510)
Acquisition of companies, net of
cash acquired (377) (5,396)
Purchases of investments (4,246) (5,997)
Maturities of investments 464 330
Sales of investments 7,075 9,120
Securities lending payable (1,543) 196
Net cash from (used in) investing 595 (2,257)
Effect of exchange rates on cash and
cash equivalents (56) 58
Net change in cash and cash
equivalents (1,335) 526
Cash and cash equivalents, beginning
of period 10,339 6,111
Cash and cash equivalents, end of
period $9,004 $6,637

Microsoft Corporation
Segment Revenue and Operating Income (Loss)
(In millions) (Unaudited)

Three Months Ended
September 30,
2008 2007
Revenue
Client $4,218 $4,139
Server and Tools 3,406 2,900
Online Services Business 770 671
Microsoft Business Division 4,949 4,117
Entertainment and Devices Division 1,814 1,929
Unallocated and other (96) 6
Consolidated $15,061 $13,762

Operating Income (Loss)
Client $3,267 $3,388
Server and Tools 1,151 959
Online Services Business (480) (267)
Microsoft Business Division 3,311 2,700
Entertainment and Devices Division 178 167
Corporate-level activity (1,428) (1,098)
Consolidated $5,999 $5,849

Source: Microsoft Corp.

Yahoo had its third quarter earnings call yesterday and the news wasn’t pretty. I’m not really sure how much the economy can really be blamed for how dismal the news was. Search advertising should be one of the last sectors within advertising as a whole to be affected by the economy.

Here’s something else to consider: While companies are looking to streamline their operations in order to save costs, they often look to technology. Companies like Google who are investing in cloud computing or other technologies that create efficiencies are making the most of this unique opportunity and coming out ahead. They beat the street with their Q3 earnings. Apple had a good earnings call yesterday with their sales of laptops and iPhones.

So when you read the quote by Jerry Yang blaming the economy, don’t be surprised if your eyes roll.

We already know that Yahoo is cutting 10% of its workforce. But many have been saying for a long time that the workforce was already bloated. I feel for the Yahoo’s because it is maddening to work at a place where layoffs are imminent. Productivity goes down and everyone speculates whose job is safe and who needs a box for their things.

The press release with all the data points for the earnings is below. All the major news organizations are focused squarely on the 64% decline in net income.

Click to read the rest of this post…

Recently, CarMax released a new search feature allowing car buyers to search for vehicles by Miles Per Gallon (MPG). Now, they’re releasing data shedding light on that decision.

From the period beginning March 2008 and ending in July, searches for hybrid vehicles increased by 43%. The spike is, of course, driven by high gas prices during that time, and hybrids get great gas mileage.

CarMax is also pointing out that cost alone isn’t a reason to switch to hybrids. It can take years to make up for the extra cost, and thousands of non-hybrid cars in its inventory can get up to 25 to over 30 MPG.

This is such a great example of what a company can do by paying attention to analytics and what consumers are searching for. It also shows the importance of investing in a solid site search.

How does this inspire you to do the same in your search marketing efforts? Give us your ideas in the comments section.

In accordance with the terms of the settlement with Carl Icahn, Yahoo has added two more board members to complete the expansion to 11. Frank Biondi and John Chapple, who previously were members of Icahn’s proxy board, have been appointed just two weeks after Icahn’s appointment was made official. 8 of Yahoo’s previous board stayed on for the deal.

Here’s the lowdown on the new dudes:

Frank Biondi has served as senior managing director of WaterView Advisors LLC, a private equity limited partnership focused on media and entertainment, since 1999. From April 1996 to November 1998, Mr. Biondi served as chairman and chief executive officer of Universal Studios, Inc. From July 1987 to January 1996, Mr. Biondi served as president and chief executive officer of Viacom, Inc. Mr. Biondi is a director of Amgen, Inc., Cablevision Systems Corporation, Hasbro, Inc., The Bank of New York Mellon Corporation and Seagate Technology.

John Chapple has served as president of Hawkeye Investments LLC, a privately-owned equity firm investing primarily in telecommunications and real estate ventures, since October 2006. Prior to forming Hawkeye, Mr. Chapple served as president, chief executive officer and chairman of the board of Nextel Partners from January 1998 to June 2006, when the company was purchased by Sprint Communications. From 1995 to 1997, Mr. Chapple was the president and chief operating officer for Orca Bay Sports and Entertainment in Vancouver, B.C., which at the time owned and operated Vancouver’s National Basketball Association and National Hockey League sports franchises in addition to the General Motors Place sports arena. From 1988 to 1995, he served as executive vice president of operations for McCaw Cellular Communications and subsequently AT&T Wireless Services following the merger of those companies. Mr. Chapple serves on the board of directors of several telecommunications companies: Cbeyond, Inc. (Nasdaq: CBEY) an integrated service telephone company, and privately held companies Seamobile Enterprises, which provides integrated wireless services at sea, and Telesphere Networks, Inc., a VOIP (Voice over Internet Protocol) company providing service in 44 states. In addition, he has served as a member of Syracuse University’s board of trustees since 2005 and as chairman since 2008.

Search engine marketers in the US tend to look West when trying to spot new SEM trends. As Frederick Jackson Turner first observed back in 1893, the frontier has always had a significant influence on American perceptions.

But, if you stare into the sunset too long, you might not see the other “new frontier” North of the Canada-United States border that’s also shaping search engine marketing trends. While Search Engine Strategies Toronto ended last week, I’m still sorting through some of the new SEM trends that I spotted by looking in a different direction.

One of the more intriguing trends that I noticed was this one: More than 80 employees of the Yellow Pages Group (YPG), Canada’s largest directory publisher, attended SES Toronto. YPG also owns and manages Canada’s most visited online directories, YellowPages.ca and Canada411.ca, so the company is no stranger to local search or Search Engine Strategies Toronto.

Now, I’ve often encouraged SES alumni as well as first time attendees of Search Engine Strategies to “bring a couple of colleagues along with you” to an upcoming SEM conference. And I’ve seen companies send teams of more than a dozen people to other SES conferences. But, I’ve never seen a group quite as large as the one I saw at SES Toronto last week.

So, I tracked down one of the key players behind this new trend. His name is Darby Sieben and he’s the Director of Online Services at the Yellow Pages Group. You can watch my interview with Darby on the SES Conference Expo channel on YouTube.

Yellow Pages’ Darby Sieben at SES Toronto 2008

Or you can read my interview with Darby Sieben of the Yellow Pages Group below. He has some very interesting insights into small and medium-sized enterprises (SMEs).

Q: The Yellow Pages directory story started 100 years ago by connecting Canadian buyers with sellers. YellowPages.ca went online in 1995. Has the Internet dramatically changed the way people approach the shopping experience?

A: Yes and No. By this I mean, the need of connecting buyers and sellers has not changed and never will. The way in which they go about doing it has changed and will continue to evolve and the Internet is only one way. Consumers are more complex today and depending on the need and particular circumstances will connect using a combination of ways including print, internet, voice, mobile, etc. The key piece of advice to a SME in this evolving world is to understand that this is about syndication of their information across multiple media platforms.

Q: According to comScore Media Metrix, the Yellow Pages Group reaches 41% of all online Canadians — and ranks #8 out of the top properties in Canada. In the United States, the SuperPages.com Network reaches about 16% of all online Americans and ranks about #21 out of the top properties in the United States. What’s going on in the Great White North?

A: The main difference between Canada and the US is the fact that the Yellow Pages brand in Canada is trademarked; we are the sole owners and users of the brand. In the US, the value and strength of the brand has been diluted as there is confusion. Second, I believe we are a very progressive directory player. We were the first to sign a deal to license data to Google, we work with all the major search players and we continue to push the envelope on technologies such as our 411 voice services, SMS, IM and our mobile platforms. Syndication of our advertiser’s information is very important. We believe in the anywhere, anytime and on any platform to get information.

Q: The content and keywords found in a print advertisement in the Yellow Pages Group and contained in a business profile on YellowPages.ca are fully searchable on the web and made available to your online partner network including Google, MSN and Yahoo! Isn’t that that a strange brew?

A: We don’t think so. If we examine a key barrier to search, that would be content. YP.ca and the search players are only as good as content that is digitized. The issue is that half of Canadian SME’s don’t have a website. We view print as the start of a very incredible journey for a SME because it contains very important pieces of content that consumers look for in the buying process. Those ads get digitized; keywords extracted, bucketized and distributed on YP.ca for our users as well as being pushed to search engines who index. It creates some incredible synergies and creates an ROI for our advertisers. To add one point here – a few years back we launched an initiative called the WebNumber. This is where we have mapped every phone number in our directory to a URL. For example – http://7804517857.yp.ca (this is the phone number for a Harley Davidson Dealership in Edmonton, Alberta). If you type that URL in – you land on their merchant page and can see their video and a host of rich content about that business. Many of our clients will register a domain name and simply point it to their page instead of investing in expensive design services.

Q: More than 80 people from the Yellow Pages Group attended Search Engine Strategies Toronto last week. Why did you bring everyone except the McKenzie brothers to the conference?

A: Well Bob and Doug are launching a cartoon version of their hit from SCTV to be aired this fall, so they were unavailable. On a serious note it is all about further learning’s and understanding. In 2007 we signed Canada’s first reseller agreement with Google and have bundled AdWords with our print and YellowPages.ca advertising. We also launched last year full customized search marketing solutions based on a budget spend and have been testing and continue to sell a guaranteed clicks product. To really become the CMO for small businesses you need to understand all sources of generating results for your customer.

Q: You mentioned that you are bundling Google with your print and YellowPages.ca advertising – isn’t Google considered a competitor?

A: We are definitely in a world of cooperative competition. You referenced ComScore earlier; here is a key fact that best explains the strategy. If we examine the unduplicated audience between Google Maps and our properties – what you realize is that there is a significant boost in audience reach. Both of us have around 31-32% reach and combined we reach over 50% - that is incredible for any SME who is looking to be placed in the path of consumers when they are making buying decisions. One thing I would like to add is that in terms of the purchase funnel – YellowPages.ca generates a very high ROI because by the time users come to us they tend to already know what they want to buy or are very close to a buying decision and need to do some comparisons. We tend to be further down the purchase funnel than search engines and the measurement for SME’s has to go beyond clicks to include phone calls and store visits. As we often say, nobody comes to YellowPages.ca to surf they come to buy and this remains a key focus for us.

It’s no secret that Twitter has been struggling lately. At any given moment, the social chat platform can go down, preventing a plethora of Tweets from being broadcast to the socially adept.

But that hasn’t kept the company from getting another round of funding, and help from friends in high places. Amazon.com founder Jeff Bezos is investing in the social network using his personal venture investment company, Bezos Expeditions.

Meanwhile, Rudy Winnacker is leaving his Google position of 5 years to tackle the operations going (or not going) on at Twitter.

Hopefully, these new additions can help the birds finally lift that whale once and for all. (If you don’t know what that means, you’re not Twittering enough!)

It’s often assumed that new sites haven’t earned enough trust in Google to pass real value. But if you flatly skip over links from new sites, you’re losing out on immense opportunities. In today’s Link Building column, “Think Links from New Sites Have Little Value? Think Again,” Justilien Gaspard advises link builders to think of it as investing in the stock market by looking for undervalued, or unnoticed, sites that have a high likelihood of rising in popularity.

» Full story

Marchex has announced the consolidation of its local ad platforms into one solution which is being called Adhere. The new platform will offer CPC ads on 200 partner sites as well as Marchex’s own network of 100,000 generic and local domains.

Marchex is touting 2 major benefits for the change:

• It enables national advertisers to efficiently fulfill their online budget in the same manner as they purchase offline advertising; namely national, spot and local in a single media buy.
• It provides small- and medium-sized businesses the opportunity to reach local customers directly through Marchex’s OpenList and reach national customers through premium, vertically focused publishers.

Along with the consolidation announcement comes news of new partners joining Marchex’s content network:

• IDG – Publishers of PC World, CIO Magazine and Macworld
• Ziff Davis Enterprise – Publishers of eWeek, CIO|Insight and Publish
• Banks.com – covering banking, loans, investing, insurance, taxes, real estate and autos
• RealtyTrac – an online marketplace for foreclosure properties
• AmericanTowns.com – a national network of community-based websites where people can find & share local information for every town in America
• YourStreet.com – Indexes and maps thousands of articles, blogs, and conversations down to the street level
• Lat49 – an online ad network providing local and brand advertisers with delivery of geo-targeted and contextual ads across a network of online maps
• HelloMetro – city level information on local history, attractions, real estate, jobs, Yellow Pages, White Pages and local resources

Related Reading:
Marchex Shows How to Cash In on Local Search
Marchex’s Local Advertising Branches Out into Mobile Market

The major Microsoft Live Search announcement scheduled for tomorrow will be the official launch of a new product: Microsoft Live Search Cash Back.

The program in partnership with eBay and its PayPal unit will offer cash back to consumers who search on Microsoft Live and make a purchase. The announcement will be made in conjunction with a taped message from eBay CEO John Donahoe. The technology is based on the acquisition of Jellyfish by Microsoft in September, 2007.

The announcement is expected to be made by Satya Nadella, SVP Search, portal & Advertising Platform Group, Microsoft, prior to Bill Gates’ presentation on “Connecting the Future.” The goal is to differentiate Microsoft’s vertical search experience for users while leveraging improvements in the core search algorithm.

Microsoft believes the Live Search Cash Back program will align the interests of consumers and the search engine, putting Microsoft “on the same side as the consumer.”

The job of Live Search will be to match the most relevant products with the most relevant consumers.

Microsoft will likely offer advertisers a CPA (Cost-Per-Acquisition) model rather than a traditional search engine Cost-Per-Click (CPC) auction.

Tony Hsieh, CEO of Zappos, said in a taped interview that the program would help overcome the barriers of first-time buyers of shoes online.

A Barnes & Noble executive stated that clickthrough rates and purchases had increased through the use of the Jellyfish pilot program.

The following message is posted on the Jellyfish.com Web site:

“As part of our pledge to save you money on the products you buy, our Cash Back rewards service is currently offline to perform necessary service upgrades and enhancements. Jellyfish Account holders will receive an e-mail notification when our Cash Back service is up and running again. Thanks for your patience.

Using Jellyfish, consumers could compare prices of products from a number of online stores. Retailers paid Jellyfish fees to feature products. A portion of that fee was refunded to consumers who bought through the Jellyfish site.

Jellyfish also offered “Smack Auctions.” During each Smack show, Jellyfish would auction off new products in a unique price dropping format. Every second that ticks off the clock, Jellyfish would drop the price of the product, until the deal sold out.

Jellyfish founder Brian Wiegand is agroup manager at Microsoft. Last year, ye stated, Microsoft is “investing heavily in shopping and e-commerce.”

Microsoft closed the deal on Sept. 27, 2007 but didn’t announce it until Oct. 2, 2007.

This isn’t the first foray of Microsoft into the world of search engine incentives.

Microsoft Live Club is an ongoing experiment with incentivizing searchers but never on the Live Search Cash Back scale. For example, Microsoft Live Search Club lets users play games. A completed gives earns tickets toward prizes, such as Zune accessories, song downloads and ringtones.

Microsoft’s official statement on the announcement:

On Wednesday, we will be announcing a major new initiative that our search teams have been driving. We are getting better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model. You’ll hear more about our plans Wednesday.

Google has been busy on the legal, tech and policy front lately, and there’s a primary theme running through all of their pursuits: Google loves wide open spaces.

First up, as is being widely reported, Clearwire and Spring are combining their wifi and broadband services. But did you know Google is one of the companies behind the $3.2 billion deal? They’ve teamed with Comcast, Intel Capital, Time Warner Cable, Bright House Networks and Trilogy Equity Partners to create the new company.

Sprint’s 2.5 GHz spectrum is part of the deal. And spectrum is something at the top of Google’s wish list lately. Google didn’t win any of its bids on a recent FCC spectrum auction. And last week, Google raised concern that Verizon will not keep its spectrum auction space open afterall.

Google is also facing resistance to its plan for “white spaces.” Several sports groups including the NFL, NBA and NASCAR are now lobbying the FCC to not open up “white spaces” on TV spectrum. Google wants them opened up for wireless. The groups are concerned about signal interference for things like coaching headsets and referee microphones.

In a different kind of open battle, Google is saying that it won’t settle a lawsuit brought by Viacom over copyrighted material, according to Business Week. David Eun, vice president in Content Partnerships at Google told Dow Jones newswires that they plan to go all the way to the Supreme Court with the case. Viacom brought the $1 billion suit after the two companies couldn’t reach a licensing agreement for content on YouTube.

Whether it’s content or spectrum, Google wants to keep things out in the open. They’re going to great lengths to make it happen, and while corporations may not be thrilled, consumers are likely to be happy should Google meet its open goals.

Related Reading:
Google’s New Wifi Push Will Drive Mobile Search