Google Inc. have bought many small and popular companies over their years of existence as the world’s most powerful search engine. In this article we will look at their top acquisitions over the years and what and how much it meant to them and the other companies.
- Motorola: Motorola was acquired by Google in a deal of 12.5 billion $ . The deal came through in the year 2011. Two years later Motorola was sold to Lenovo by Google in 2.91 billion $. Main reason for buying Motorola was patents and they kept most of them even when they had sold them to Lenovo. This seemed like a pretty good business move, but in reality Google was probably getting themselves in deeper trouble by buying the company in the first place since its easier for companies making handsets to get sued than ones making OSs.
- NestLabs: NestLabs was acquired in 2014 for a hefty sum of 3.2 billion $. Founded by Matt Rogers and Tony Fadell, NestLabs makes smart thermostats and smoke detectors. Apparently it was acquired in order to move into consumer market. It acquired the company and left Nest Labs to use its own brand. Through this acquisition Google hoped to gain a firm footing in the growing market for web-connected household appliances. Moreover, this deal was also supposed to strengthen Google’s footprint in an urban household.
- DoubleClick: DoubleClick was bought for a sum which is a little less than NestLabs, 3.1 billion $ in 2007. But, taking time value of money into consideration, would put this deal as of way more value back then. Google made this move to have a presence in online advertising. This is what Google has to say about it – “By enabling our AdSense network to work with DoubleClick’s delivery mechanisms, for example, advertisers can obtain more precise metrics in order to judge the effectiveness of their campaigns. The combination of the technologies and expertise of Google and DoubleClick will help publishers better monetize their unsold inventory, thus helping to fuel the creation of even more rich and diverse content on the Internet.”
- YouTube: One of the biggest move and acquisitions was to buy YouTube. Youtube was founded in the year 2005 as a video sharing website by three former PayPal employees in February 2005. And it was acquired by Google in 1.65 Billion $ in 2006. It is the second search engine most used after Google. The combination of Google and YouTube could further strengthen Google’s dominance in online advertising, giving it an edge over rivals such as Yahoo! (Charts), Microsoft’s (Charts) MSN and News Corp (Charts)., which owns the social networking site MySpace. Yahoo, Microsoft and News Corp. also had probably expressed interest in buying YouTube but failed.
Today, all that Google has to offer to us is partly, or probably hugely influenced by the aforementioned acquisitions in this article.