Here's an intriguing, if not highly-speculative, thought for a Friday afternoon: Google spends some of its multi-billion dollar war-chest to buy Tivo. The idea comes from Motley Fool's Rick Aristotle Munarriz, who lists Tivo as one of Google's potential targets based on the idea Google could serve up relevant ads to Tivo users because it would know what shows you're watching and where you live. If this deal comes to pass, Munarriz says Google could sell a subsidized DVR to customers who would agree to receive targeted ads. Buying Tivo would give Google a foothold in the TV market and it would only cost $500-million or so - a mere drop in the bucket for Google. Russell Shaw buys into Munarriz's thesis, adding Google/Tivo could create "one-to-one specials channels based on individual users location and viewing habits". Russell says a local Google salesforce would the sell targeted Tivo AdWords or AdSense placements to advertisers looking to pursue specific customer groups. I like the idea of Google-Tivo because Google clearly has an interest in video, and buying Tivo would give a well-known brand name, loyal customers and technology that could easily be customized to meet Google's strategic goals, which includes the need for more advertising vehicles/platforms. It would also start the much-needed process to make Google more than just a one-trick pony, albeit a lucrative one, by launching the company into the $60-billion television advertising business. It doesn't take too much imagination to see a time soon when Google partners with the major networks (ABC, NBC, CBS) or cable channels (HBO, Showtime) to offer on-screen AdSense ads. At a time when large (40"+) digital TVs with set-top boxes (some of them already Web-enabled) are becoming more home entertainment fixtures, the idea of using the remote to click on an ad to buy a boxed-set of "The Sopranos" while you're watching the show, sounds like money to me.

By the way, Munarriz's other potential Google targets are CNet.com, iVillage, AOL and TheKnot.com. Of these, I think AOL makes the most sense because AOL accounts for nearly 12% of Google's revenue. Buying it would protect this business and give Google a huge amount of content and, more important, inventory to sell even more advertising. I think this is the kind of blockbuster deal Google needs to seize the iron while it's red-hot.