Chegg sues Google over its decline
ChatGPT grievously wounded Chegg, but the education tech company also thinks Google Search’s AI summaries are to blame for kneecapping its traffic and revenue. On Monday, Chegg filed suit in federal district court against Google.
During an earnings call yesterday, the company said it was considering strategic alternatives like going private, thanks in part to Google’s behavior.
According to President and CEO Nathan Schultz:
“Chegg has a superior product for education, as evident by our brand awareness, engagement, and retention. Unfortunately, traffic is being blocked from ever coming to Chegg because of Google’s AIO and their use of Chegg’s content to keep visitors on their own platform.”
The stock is down nearly 24% premarket and is trading at about $1.19.
According to President and CEO Nathan Schultz:
“Chegg has a superior product for education, as evident by our brand awareness, engagement, and retention. Unfortunately, traffic is being blocked from ever coming to Chegg because of Google’s AIO and their use of Chegg’s content to keep visitors on their own platform.”
The stock is down nearly 24% premarket and is trading at about $1.19.
