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For many companies, the Google (NASDAQ: GOOG) search engine is the lifeblood of distribution. But, there is a problem: What if Google decides to get into the business itself? It's certainly a big-time threat.
For example, there are signs that Google is planning to enter the online mortgage business. Essentially, the service would allow users to search among a variety of lenders, looking for the best deal. Yes, it sounds like LendingTree, huh?
Well, yes. In fact, LendingTree has put its attorneys on the case and has filed a lawsuit. The complaint is against Mortech, which develops technologies to automate lending activities. It looks like the firm has partnered with Google to build out an online mortgage exchange.
The issue is that Mortech apparently has an exclusive agreement with LendingTree. As is the case with any litigation, it's difficult to determine what will happen. But there will be a court hearing in early September.
Interestingly, it seems that Google needs to farm out aggregation technology. It seems that their smart engineers could find workarounds, right?
Yet, the fact remains that Google certainly has an unfair advantage. Because of its huge online footprint, the company can easily find growth opportunities -- and launch its own offerings. And, as growth appears to be leveling out, this strategy will definitely be critical for Google.
Tom Taulli is the author of various books, including The IPO Primer and The Complete M&A Handbook
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