Shortly after we found out that Google was to purchase Beat That Quote we highlighted how Google purchased a website that was deeply engaged in numerous nefarious black hat SEO practices. A friend just pinged me to confirm that Google has penalized the domain by removing it from the search results.
From a competition & market regulation perspective that was a smart move for Google. They couldn't leave it in the search results while justifying handing out penalties to any of its competitors. As an added bonus, the site is building up tons of authoritative links in the background from all the buzz about being bought by Google. Thus when Google allows it to rank again in 30 days it will rank better than ever.
Based on their web dominance which generates such a widespread media buzz, Google adds millions of Pounds worth of inbound links to any website they buy.
The message Google sends to the market with this purchase is that you should push to get the attention of Google's hungry biz dev folks before you get scrutiny from their search quality team. After the payday the penalty is irrelevant because you already have cash in hand & the added links from the press mentioning the transaction will more than offset any spam links you remove. Month 1 revenues might be slightly lower, but months 2 through x will be far higher.
Source: http://www.seobook.com/beat-it-beat-it
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