Innovation Strategies


Venture Acquisitions by Google

Venturing Into New Areas and Adding New Value To Existing Technologies and Services


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Examples of Acquisitions by Google

Applied Semantics. From a ROI perspective, acquisition of Applied Semantics in 2003 was a most profitable one. It was used to built AdSense – the paid search advertising platform that's responsible for most of Google's revenue and profits.

Double Click. The purchase of DoubleClick, a display advertising company, for US$3.1 billion in 2007 was a largest acquisition by Google. The technology is used in AdSense and YouTube.

Android. Acquisition of Android, the mobile phone platform, for approximately US$ 50 million in 2005 was Google’s one of the best deal ever. Only two years after launch, Android has become the second-most-popular mobile platform in the world, with almost 25% share. Android generates revenue indirectly. Google gives the OS away, but it provides a built-in user base for mobile search and mobile advertising, which generate more than $1 billion a year.

JotSpots. Google Sites started out as JotSpots. Google acquired the company in 2006.

Postini. Google bought Postini email security and services company in 2007 for $625 million and integrated its add-on email services, like archiving and spam-blocking, into Gmail for business users. This acquisition was a great addition to Google's enterprise applications business.

YouTube. When Google bought the video-sharing service in 2009, YouTube was full of copyrighted content that users uploaded without permission. Google skillfully instituted a reasonable takedown policy and negotiated contracts with content owners to make YouTube safer and highly profitable.

On2. Having bought On2 video compression company for US$133 million in 2010, Google open-sourced the VP8 video codec it acquired with On2, and renamed it WebM. Google’s objective was to push WebM as a replacement for H.264, a much more widely used standard for Web video.

Like. Google bought visual search company in 2010 from US$ 100 million, and put the team to work building a search vertical for women's fashion called

Slide, SocialDeck. Google bought two social gaming companies in 2010 to develop new social initiatives.




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