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The Strategy Behind Google's Most Expensive Acquisitions

THE STRATEGY BEHIND Google's MOST EXPENSIVE ACQUISITIONS 24 %24 LARRY CEO TOP 10 MOST COSTLY ACQUISITIONS 10: SkyBox Imaging $500MILLION Skybox Imaging Strategy: With Skybox's satellite technology, Google will be able to obtain accurate and up-to-date imagery for Google Maps. 2014 09: Dropcam $555MILLION dropcam Strategy: Upon acquiring Nest Labs (see below) earlier in 2014, Google bought out Dropcam (video monitoring and security technology) to help Nest Labs increase their home automation products line-up. 2014 08: Postini $625MILLION postini Strategy: After already utilising Postini (an email and web security service) under license to help with the security of Gmail, Google decided they wanted to acquire the technology themselves to further its growth. In 2014, the service was discontinued. 2007 07: ITA Software ita $700MILLION Software Strategy: ITA is a major stakeholder in the travel reservations software industry. So much so that Bing Travel (a competitor of Google) also relied heavily on it. Google acquired ITA, thus owning 'infrastructure' behind a direct competitor. The service 'Google Flights' has since been launched. 2010 06: AdMob (")) admob $750MILLION Strategy: Prior to the deal, internet usage on mobile devices was growing rapidly. Google reacted quickly to acquire a mobile ad platform, understanding that mobile advertising was going to become very big for clients and partners. 2009 05: Waze $966MILLION waze Strategy: Waze is a GPS-based navigation app. Its users engage very frequently with the app by updating its roads, a culture which Google would like adopted into their other services. 2013 04: YouTube $1.65BILLION You Tube Strategy: YouTube which launched in 2005 quickly became the go to place for everything video-sharing. Google snapped up the company just over a year after its launch and has transformed it into the 2nd biggest search engine in the world - only behind Google itself. 2006 03: DoubleClick $3.1BILLION dguble click Strategy: Google wanted a strong presence within the online advertising world which prompted them to acquire DoubleClick. Not only did they acquire their software, but they also acquired the relationships with web publishers, advertisers and agencies, beating the likes of Microsoft and a host of other potential buyers to the acquisition. 2007 02: NestLabs $3.2BILLION nest Strategy: Expanding its presence in consumer homes, Google bought Nest Labs - a company which makes smart thermostats and smoke detectors. Nest Labs was founded by Tony Fadell, who is known as "the father of the iPod". 2014 01: Motorola $12.5BILLION MOTOROLA Strategy: The motivation behind Google buying Motorola was its patents. However, 2 years after purchase, Google sold Motorola for $2.91 bn to Lenovo after becoming unprofitable. Although they did manage to keep the majority of the patents. 2011 TOTAL SPENT $24,546,000,000 GOOGLE'S FUTURE ACQUISITION PREDICTIONS Spotify NETFLIX With an impressive market capitalisation of $23bn, Netflix is a big player within the subscription based video streaming industry. Spotify is the largest subscription based music service in the market and Google want in. V Pros: • Good music industry relationships • Understands subscription-based V Pros: • 50 million subscribers • Producing quality exclusive content entertainment • Available on most modern devices • Largest music streaming service X Cons: X Cons: • Price tag • Price tag • Already own Songza, another music service • Already own other video streaming services • A bidding war could emerge between Google and Facebook INTERESTING GOOGLE FACTS THE 2 YEARS PRIOR TO GOOGLE CEO LARRY PAGE GOOGLE USES THE OUTSPENT TOOTHBRUSH TEST JANUARY 2014 ITS 5 CLOSEST RIVALS TO SEE IF A COMPANY IS WORTH BUYING ON ACQUISITIONS COMBINED 66IS THIS SOMETHING YOU WILL USE ONCE OR TWICE A DAY, & DOES IT %24 MAKE YOUR LIFE BETTER? 99 Sources: / / / / / / aptitude. @AptitudeTeam POTENTIAL PRICE: NOITTI801$ POTENTIAL PRICE: NOIT7I80E$

The Strategy Behind Google's Most Expensive Acquisitions

shared by Aptitude on Jan 20
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With $24.5 billion spent on 10 of their most expensive acquisitions, just what was the strategy behind each of these purchases?





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