More On Google, Hearst, Goldman Powerline Investment

The alliance of investment bank Goldman Sachs, publisher Hearst Corp. and search engine giant Google as investors in powerline broadband company Current Communications Group continues to draw attention and speculation. (In its report earlier this week, the Wall Street Journal put the amount at about $100 million. MediaPost says “nearly $100 million.”) It may come out of left field for most, but, as MediaPost notes, attendees at the American Association of Advertising Agencies’ show last March heard a top FCC exec describe powerline access as a way to transform conventional electronic devices. Edmond J. Thomas, then the FCC’s top technologist, told the group: “Anything that consumes electricity can have an idea.”
That potential offers an explanation Google isn’t willing to provide about its interest in the company.
Update: Just came across this fascinating take on the investment from Alan Mutter: “Combining its search acumen, a vast video library and ubiquitous delivery through BPL, Google has a shot at delivering the Holy Grail, virtually limitless VOD. The achievement would outflank the long-promised efforts of the legacy multi-channel TV and phone companies, which continue to battle technical restrictions, the limitations of their business models and, not least, each other.”

Comments have been disabled for this post