omid-kordestani

Who is Omid Kordestani?

Omid Kordestani is a businessman who has held various senior roles at Twitter and Google since 1999. One of several Iranian-American success stories, Kordestani is a tech billionaire who was Google’s ninth employee and critical to the company’s early revenue generation.

CategoryDetails
Full NameOmid R. Kordestani
Date of Birth1963
Place of BirthTehran, Iran
NationalityIranian-American
EducationBachelor of Science in Electrical Engineering from San Jose State University, Master of Business Administration from Stanford Graduate School of Business
Early CareerWorked at Hewlett-Packard, Worked at Netscape as Vice President of Business Development
Major CompaniesGoogle, Twitter
PositionsSenior Vice President of Worldwide Sales and Field Operations at Google, Executive Chairman at Twitter
Major ProjectsKey role in Google’s business and revenue growth, Development of Google’s sales and operations
Notable AchievementsInstrumental in Google’s IPO, Significant contributions to the growth and success of Google’s advertising model
Net WorthEstimated around $1.9 billion (as of 2023)
Personal LifeMarried to Bita Daryabari (divorced), Two children, Known for his philanthropic efforts
PhilanthropyActive in various charitable causes, Focus on education and global development, Donated to Persian studies programs at Stanford University and UC Berkeley
Vision for FutureAdvocate for technology-driven innovation and global connectivity
Awards and HonorsRecognized for his contributions to the tech industry, Featured in various business and technology publications

 

 

Early life, education, and career

Kordestani was born in Tehran, Iran, in 1963 and attended the Italian Catholic school known as Andisheh Don Bosco.

After his father died in 1976, Kordestani moved to California and later graduated with a degree in electrical engineering from San Jose State University.

Kordestani then received an MBA from the Stanford Graduate School of Business in 1991. His first career role was a four-year stint at Netscape Communications.

Starting as director of OEM Sales, Kordestani established relationships with major clients such as AOL, Amazon, and Intel and increased Netscape’s revenue from $88 million to $200 million in the space of 18 months.

Over the 1990s, he also worked in various product management, business development, and marketing roles with The 3DO Company, HP, and Go Corporation.

Kordestani joins Google

Kordestani joined Google in May 1999 as its eleventh employee where he lead the development of the company’s first business model.

This, according to his LinkedIn profile, saw Kordestani grow the company from a few employees and its first dollar in revenue to a company with over 12,000 employees and $20 billion in revenue.

Kordestani’s successes did not go unnoticed, with TIME recognizing him as one of the “100 People Who Shape Our World” in 2006. He was also chosen as the Persian Person of the Year at the Persian Awards in 2007.

Twitter

After a decade in senior positions at Google, Kordestani transitioned from an operational role to one of advisor to the office of the CEO in 2009.

Kordestani returned briefly to Google as its chief business officer but was poached by Twitter where he became the platform’s Executive Chairman in October 2015.

Kordestani was replaced in June 2020 after a power struggle with Twitter founder Jack Dorsey and hedge fund Elliott Management.

He remained on the board until it was dissolved in October 2022 with new owner Elon Musk planning to take the company private.

Today, Kordestani is chairman of the Board at British multinational Pearson, an education and mass media company that was once the largest book publisher in the world.

Philanthropy

Kordestani supports various philanthropic causes related to medicine, education, and issues that affect Iranian-Americans.

He co-founded the PARSA Community Foundation in 2006 to further Iranian culture, heritage, entrepreneurship, and philanthropy in California.

These efforts enable Kordestani to draw attention to the history of relations between Iran and the United States and break down racial or cultural stereotypes. 

Key takeaways

  • Omid Kordestani is an Iranian-American businessman who has held various senior roles at Twitter and Google since 1999.
  • During Kordestani’s four-year stint at Netscape Communications, he established relationships with major clients such as AOL, Amazon, and Intel as director of OEM sales. His ability to grow Netscape’s revenue soon attracted the attention of Google.
  • Kordestani joined Google in May 1999 as its eleventh employee where he lead the development of the company’s first business model. Since that time, he has served in operational and advisory roles for both Google and Twitter. 

Key Highlights

  • Background & Early Life:
    • Born in Tehran, Iran in 1963.
    • Attended Andisheh Don Bosco, an Italian Catholic school.
    • Moved to California after his father’s death in 1976.
    • Graduated from San Jose State University with a degree in electrical engineering and later earned an MBA from Stanford in 1991.
  • Early Career:
    • Began his career at Netscape Communications, increasing the company’s revenue from $88 million to $200 million within 18 months.
    • Worked with notable companies like AOL, Amazon, Intel, The 3DO Company, HP, and Go Corporation in various roles throughout the 1990s.
  • Google:
    • Joined Google as its eleventh employee in May 1999.
    • Played a pivotal role in developing Google’s first business model.
    • Under his leadership, Google grew from a handful of employees to over 12,000 with a revenue of $20 billion.
    • Recognized by TIME as one of the “100 People Who Shape Our World” in 2006 and awarded the Persian Person of the Year in 2007.
  • Twitter:
    • Transitioned from Google to an advisory role in 2009.
    • Later returned to Google briefly as Chief Business Officer.
    • Became Twitter’s Executive Chairman in October 2015.
    • Left Twitter in June 2020 after a power struggle, and remained on the board until October 2022 when Elon Musk decided to take Twitter private.
  • Current Role:
    • Chairman of the Board at Pearson, a British multinational education and mass media company.
  • Philanthropy:
    • Actively supports causes related to medicine, education, and Iranian-American issues.
    • Co-founded the PARSA Community Foundation in 2006 to promote Iranian culture, heritage, and philanthropy in California.
    • Uses his philanthropic efforts to highlight the history of U.S.-Iran relations and challenge racial or cultural stereotypes.
  • Overall:
    • Omid Kordestani is a prominent Iranian-American businessman with significant roles in major tech companies like Google and Twitter since 1999.
    • His leadership and vision played a crucial role in the growth and success of these tech giants.

Read Next: Google Business Model, History of Google.

Related To Google

Who Owns Google

who-owns-google
Google is primarily owned by its founders, Larry Page and Sergey Brin, who have more than 51% voting power. Other individual shareholders comprise John Doerr (1.5%), a venture capitalist and early investor in Google, and CEO, Sundar Pichai. Former Google CEO Eric Schmidt has 4.2% voting power. The most prominent institutional shareholders are mutual funds BlackRock and The Vanguard Group, with 2.7% and 3.1%, respectively.

How Does Google Make Money

how-does-google-make-money
Google (now Alphabet) primarily makes money through advertising. The Google search engine, while free, is monetized with paid advertising. In 2023, Alphabet generated over $175B from Google search, $31.51B billion from the Network members (Adsense and AdMob), $31.31B billion from YouTube Ads, $33B from Google Cloud, and $34.69B billion from other sources (Google Play, Hardware devices, and other services). And $1.53B from its other bets. 

Google Business Model

google-business-model
Google is an attention merchant that – in 2022 – generated over $224 billion (almost 80% of revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $29 billion segment), and Google Cloud ($26.2 billion).

Google Other Bets

google-other-bets
Of Google’s (Alphabet) over $307.39 billion in revenue for 2023, Google also generated for the first time, well over 1.5 billion dollars in revenue from its bets, which Google considers potential moonshots (companies that might open up new industries). Google’s bets also generated a loss for the company of over $4 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries, which are ramping up in 2023. 

Google Cloud Business

google-cloud-business-model
In 2023, Alphabet’s (Google) Cloud Business generated over $33 billion within Alphabet’s Google overall business model, and it was also profitable, with over $1.7 billion in profits. Google Cloud is instrumental to Google’s AI strategy.

How Big Is Google?

how-big-is-google
Google is an attention merchant that – in 2023 – generated $237.85 billion (over 77% of its total revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $31.5 billion segment), and Google Cloud (over $33 billion).

Google Traffic Acquisition Costs

what-is-google-tac
The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic – on its pages – for monetization. Over the years, Google has been able to reduce its traffic acquisition costs and, in any case, to keep it stable. In 2023 Google spent 21.39% ($50.9 billion) of its total advertising revenues ($237.8 billion) to guarantee its traffic on several desktop and mobile devices across the web.

YouTube Business Model

how-does-youtube-make-money
YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it reported more than $31B in revenues by 2023. YouTube also makes money with its paid memberships and premium content.

Google vs. Bing

google-vs-bing
In 2023, Google’s search advertising machine, generated over 175 billion dollars. Whereas Microsoft’s Bing generated 12.2 billion dollars. Thus, as of 2023, Google’s search advertising machine is over 14x larger than Microsoft’s search advertising machine.

Google Profits

google-income
Google makes most of its money from advertising. Indeed total advertising revenue represented nearly 78% of Google’s (Alphabet) overall revenues for 2023. Google Search represented nearly 57% of Google’s total revenues. Google generated $307.39B in revenues in 2022, and $73.79B billion in net profits.

Google Revenue Breakdown

google-revenue-breakdown
In 2023, Google generated $307.39 billion, comprising $175B in Google Search, $31.51B in YouTube ads, and $31.31B in Google network revenue. $34.69B in other revenue, $33B in Google cloud, $1.53B in other bets.

Google Advertising Revenue

how-much-money-does-google-make-from-advertising
In 2023, Google generated 237.85B in revenue in advertising, which represented over 77% of its total revenues of $ 307.39 B. In 2022, Google generated $224.47B in revenues from advertising, which represented almost 80% of the total revenues, compared to $282.83B in total revenues. Therefore, most of the revenues from Alphabet, the mother company of Google, come from advertising.

Apple vs. Google

apple-vs-google-revenues

Google Employees Number

google-layoffs
At the end of December 2022, Google had over 190,000 employees.  On January 20, Google announced the layoff of 12,000 employees within the company, thus bringing the number of total employees by December 2023 to 182,502 full-time employees.

Google Revenue Per Employee

google-revenue-per-employee
Google generated $1,684,332 per employee in 2023, compared to $1,486,779 per employee in 2022. As of January 2023, as the company announced a mass layoff, it brought back its revenue per employee at $1,586,880, still behind the peak in 2021, for $1,840,330.

YouTube Ad Revenue

youtube-ads-revenue
By 2023, YouTube generated $31.51 billion in advertising revenue.

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