MAJOR PAPERS:

• The SEC has moved closer to approving the issuance of active exchange-traded funds by Invesco Plc's (NYSE: IVZ) PowerShares Capital Management. The Wall Street Journal reported that this is the start of additional SEC approvals that will change the face of the mutual fund industry.
• The Wall Street Journal also reported that despite some major cost cutting efforts, General Motors Corporation (NYSE: GM) may be challenged to come close to breaking even this year. The company still has "serious kinks" in its core automotive business in North America.
• According to the Financial Times, Morgan Stanley (NYSE: MS) will not be able to form a landmark securities joint venture in Vietnam after the government gave in to pressure from rival banks that did not approve of the deal.

OTHER PAPERS:

• The Associated Press reported that Google Inc (NASDAQ: GOOG), looking to compete with Microsoft Corporation (NASDAQ: MSFT) in the e-mail security for businesses space, is expected to announce tools today that will build upon technology acquired last year from Postini and are designed to protect against leaks of information and to weed out potential viruses.

It's no secret that Google (NASDAQ: GOOG) is super-serious about its web applications business. Google Docs features a notebook, word processor and spreadsheet functions, which are all available for free over the web. Although the company continues to say that it is not looking to complete against Microsoft (NASDAQ: MSFT) Office, it is. Google just likes deflecting competitive talk until the products show what they can do.

To ensure that those web applications are as secure as possible, Google plans to buy Postini for $625 million. Postini offers a complete suite of security tools to help protect email, instant messaging and other web-based applications. Although focus on the Postini purchase has centered on Google needing to shore up its Gmail web-based email service, this acquisition underscores how Google is using its Web-based applications to gain customers of all sizes. Microsoft Office be damned.

Think about Google's collection of web-based applications now: Gmail, Calendar, Talk, Docs & Spreadsheets and Personal Start Page. That's quite a bit of web muscle Google flexes, and securing all those pieces from any threat would seem to be a main priority for the web search leader.

Remember, Google lives or dies by the web browser, since it produces no standalone software that brings in any revenue. Well, maybe a tiny amount from Google Earth, but that's about it.

The Postini acquisition is more important than its initial glance, although the purchase price seems a bit high. But, without web security, Google could wither on the viine. We can't have that!

Another week, another deal. Google Inc.'s (NASDAQ: GOOG) M&A team has been busy this year. The latest deal: $625 million for Postini.

For a company the size of Google, the price tag isn't big. But the deal is certainly significant. Basically, Postini develops security for email systems. So as Google tries to get more traction from its Gmail service, a top-notch security layer is a must-have. It will also be key in getting a piece of Microsoft Corp.'s (NASDAQ: MSFT) email franchise.

I had a chance to interview Nick Selby, who is the Enterprise Security Analyst with The 451 Group. According to him, "This is Google's biggest security acquisition to date and confirms that it is increasingly targeting the enterprise. The Postini buy also gives Google 35,000 enterprise customers. Postini has been dual tracking for a private sale and IPO. We would have thought it would go for a bit more for an acquisition. So perhaps Google has got itself a good deal as well as a strategic fit."

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Google Inc. (NASDAQ: GOOG) appears to be willing to shop until it drops, although it is not clear what the future of each of its investments may be.

The big search company is buying Postini for $625 million. Google describes its new prize as "a global leader in on-demand communications security and compliance solutions serving more than 35,000 businesses and 10 million users worldwide." In plain English that means security for e-mail, messaging, and other web-based communications applications.

Google does not say what Postini's revenue run rate is, but it appears that owning the company will help it compete with Microsoft Corp. (NADSAQ: MSFT) in the desktop applications business. The real question is how much protection companies want for their e-mail and messaging function. It is unclear that it is a big business.

The lack of any cogent explanation for the purchase has to make investors wonder if the Google buying binge is getting a bit overheated.

Douglas A. McIntyre is a partner at 24/7 Wall St.