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I completely agree that /blog was better than blog subdomain in the past, but this article has me convinced that google now treats them the same.

http://googlewebmastercentral.blogspot.com/2011/08/reorganiz...

Am I wrong?

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Wow this is an excellent find and it sounds right. They had something as arbitrary as "pets.example.com" counting for "www.example.com" so then "blog.example.com" should surely be the same as "www.example.com" and "example.com"

Can anyone clarify?

After reading some of the comments, it looks like this only counts for tracking inside of google webmaster tools. It doesn't necessarily mean that this is true for page rank and the "google juice".

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