Google started out as a small search engine by a couple of kids fresh from grad school in 1995. Since then it has grown to be a company of large magnitude and enormous influence in the market. To grow its empire and influence Google Inc. (NASDAQ:GOOG) continues to expand and evolve by acquiring other companies and establish itself as the undisputed King of the digital world. Many critics and analysts call Google greedy as it makes acquisition deals almost every month. However what sets Google apart is its vision to recognize which acquisition will help its cause in which area. Google rebuffs allegations of greed and power and calls itself competitive and ambitious.
Here is a look at some major acquisitions over the years;
Deja, now known as Google Groups, was one of the first acquisition deals made by Google back in 2001 for an undisclosed price. Deja was in a comatose state when Google acquired it and changed it into one of the leading forums in the world now known as Google Groups. Since then Google has made large and small acquisitions to grow and progress.
Google acquired the mobile phone platform Android in 2005 in a deal worth 50 million. Android was a growing smartphone operating system designed specifically for direct manipulation, which is usually found in touch screen tablets and smartphones. After Google Inc. acquired Android, it became one of the leading operating systems in the world, currently it is the top dog in the market with share soaring high. Android technology is also used in automobiles and wearable gadgets. Android, under Google, has been outselling Apple’s OS and Windows and generating tons of revenue for Google.
Another large acquisition was YouTube. YouTube was a risky deal, as the video sharing site had a lot of copyrighted material being uploaded without permission. Lawsuits were imminent and analysts claimed that the deal would be disastrous. But the 1.65 Billion deal turned out smooth when Google successfully negotiated take-down policy. YouTube now earns more than $1 billion per year which equals 10 percent of Google’s total revenue per annum.
Three years ago Google bought Motorola, a smart phone company with dwindling shares and a fading reputation, for a huge sum of 12.5 Billion; this acquisition has been termed as Google’s biggest yet. The acquisition was made to compete with Apple in the smartphone market. Apple has been the standout in that area and Google just couldn’t let that be. But Google turned over Motorola less than three years later to Lenovo, the China based company, for 2.91 billion.
Google Inc. (NASDAQ:GOOG) has had both good luck and bad luck in its acquisitions; some of them have turned out pretty lucrative while others have given them heavy losses. But that doesn’t change the fact that Google is still in a shape to outbid any company, if it wants to. The allegations of greed are pointless because a company may buy whatever it desires and if that happens to be the rival company, then it’s not Google’s fault. Eliminating rivalry is a positive trait as only the profit generating companies can survive in the market. Google’s takeover deals only signify its strength and credibility in the market.
