Google topples it’s five largest competitors in acquisitions to bolster search
Google has spent a total of $17 billion in acquiring new companies to join the Google team for the last two years. Seen as a move to bolster their search engine as well as find better platforms for their ads, Google has beaten Microsoft, Apple, Amazon, Yahoo and Facebook combined in the cash splash.
Google’s largest spending so far cost $12.4 billion when they purchased Motorola in 2012. This was a push to get into the smartphone market by acquiring the smartphone giant together with it’s wireless patents. 3 days ago, Google went on another spending spree by purchasing Nest. Nest designs and manufacturers thermostats and smoke alarms. The deal cost Google $3.2 billion in cash. The Nest acquisition is their second largest to date. Nest is headed by Tony Fadell, the man who helped Steve Jobs create the iPhone. According to Bloomberg, Nest’s Co-founder is also an Apple alumnus as well as the 97 employees working in the company. Nest’s management is using the Apple days as experience to get more thrust in the market and they have been good at it so far leading to the purchase by Google.
Another latest acquisitions made by Google include June 2013’s purchasing of Waze Inc. for $1 Billion in cash. Waze is a software company that provides social tools to incorporate into Google maps as well as to show real time hazards and alternate routes.
These acquisitions are a sign that Google is preparing for the shift in demand for consumer devices, as PC sales are tipped to be overtaken by smartphones and tablets by 2017. Google recognizes that the internet is everywhere and is prepared to pay top dollar to get the very best of talents in the market. Google’s efforts to push deeper into smartphones and web-enabled gadgets are driving it’s intent to acquire every small company that can help them achieve their mission. Well, they made $56.5 billion in profits last year, a 5.2% increase from the previous year. They have all the money to spend, and they are doing it by acquiring more companies. Welcome to the Google conglomerate.