$265 million a year is real money.
They are burning faster than they can reap cash.
They are burning about $100 million a year in excess of revenue. If they get their model fixed soon, they will be rolling in cash. If not, they may be toast. However, there are some big boys in the industry trying to help them get the model right.
I’ve read that as well, but they are not creating anything new. They are eating the television market which had an established market and the newspaper/magazine which had a great model before “Free” became the new model. Will people pay for content that can not be regulated as well as the models that they replaced? It doesn’t make me want to invest in Google any more than Pet’s.com.