The popularity of Google has grown multifold with time. Its growth graph has been tremendous and the credit goes to its acquisitions of higher capital based start-ups as compared to any other company in the year 2010. It has been able to establish itself after several years of research on its rival companies namely Cisco, Microsoft and IBM that lead the M&A market
As the Third quarter commenced, the company expressed intent to have an acquisition of the ITA software, and also the purchase of about 20 such establishments during the previous year. As Google competes with the major leaders such as Apple and Microsoft, it needs to get the latest technology and main talent for start-ups, in spite of developing them on its own.
For the last two quarters of 2008 and several months in the beginning of 2009 Google did not have any major acquisitions however other similar companies restricted their expenses due to global economic tumult. Although in October, CEO Eric Schmidt informed that they are now open for their business and can make any type of acquisition whether large or small. As per the sources, Google has come up as a leader in the M&A marketplace with respect to the acquisitions made.
Google has been acquiring various kind of businesses, but as compared to other information technology companies, it has been acquiring comparatively fewer companies. Google has been able to make a large amount of purchases in 2010. In the month of May, it has purchased AdMob worth $750 M, thereby gaining the topmost position on the list. Network world previous report reveals that Google’s purchases in 2010 include BumpTop, Aardvark; an iPhone application maker, a Web-based photo editing vendor Picnik; Agnilux, Episodic, the Microsoft Office add-on and mobile phone application startup Plink.
Google at all times has tried to build in-house products and now they are expanding and entering into many new areas like mobiles and also energy. This will bring in more competition for them and the requirement is to become well equipped in order to compete. Google managed to acquire 8 companies in the year 2010, which is nearly twice the number of its close competitor IBM.
In the year 2009, Google was able to acquire just three companies, whereas its competitor Oracle leaded by acquiring 5 such ventures. During the decade 2000-2009, Google stood ninth with around 17 acquisitions, which is definitely remarkable for a company that was formed only 2 years before the millennium turned.
Google has successfully opened up a self venture capital organization, investing in various industries such as pharmaceutical research, data analytics, gaming, online payment services and utilities. The financial statements of the acquisitions made by Google have not been revealed because they are so minute that they are almost immaterial to Google’s earnings. Most of the times, Google acquires small companies just for the sake of getting new talent and not technology. Google is trying its best in mobile advertising policy, to give a competition to the other companies which form an element of the company’s earnings over the next ten years.