Reuters reports that between them the US and British markets account for 76 percent of Google’s revenues.

The numbers are: 62 percent from the US, and 14 percent from the UK.

We reported earlier that a fall-off in British year-end ad revenues was the chief reason for Google’s share slide last week.

Reuters comments: “This week, the report of a year-end fall-off in Google’s biggest external market, Britain, created a cascading effect that drove up its tax rate, smacked down profits and led the stock to plunge almost 20 percent, before partly rebounding.”

El Reg is claiming that Google is planning a version of Linux for the desktop, thus taking on Microsoft in its core business. Jason Calacanis is claiming “I told you so” over this. But we are cautious, as ever.

Google isn’t a software company and has other fish to fry: IPTV and person-specific advertising for starters.

However, we are not always psychic, so here’s what The Register has to say:

A version of the increasingly popular Ubuntu desktop Linux distribution, based on Debian and the Gnome desktop, it is known internally as “Goobuntu”. Google has confirmed it is working on a desktop linux project called Goobuntu, but declined to supply further details, including what the project is for. … It could be for wider deployments on the company’s own desktops, as an alternative to Microsoft, but still for internal use only. But it’s possible Google plans to distribute it to the general public, as a free alternative to Windows.

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Google’s shares took a tumble of up to 19 percent yesterday as company earnings failed to match expectations on Wall Street.

Bizarrely, some blamed the British market, Google’s second largest, for some of the drop. It seems a fall in ad revenues, due (surprisingly) to the Christmas holidays, resulted in Google paying more tax to the British Exchequer. Since Google pays low tax across Europe from its Irish base, it seems a strange excuse.

Yahoo News reports: “SAN FRANCISCO (Reuters) - Shares of Google fell as much as 19 percent on Tuesday after the Web search company missed Wall Street profit targets for the first time in its short but spectacular history, as disappointing British results led to higher-than-expected taxes.”

Maybe Larry should have a word with Gordon Brown.