This year, Google has launched an unusual activity on buying third-party companies. Of course, a year ago, Eric Schmidt warned that the crisis was over and now they will buy one startup per month
. But in reality, Google is much more active and now buys about one startup per two weeks.
In the first nine months of this year, Google made 19 purchases
, accounting for 28% of acquisitions in the entire history of the company. For comparison, in 2009 only 7 firms were bought.
Whom the search giant buys? Of the 19 transactions this year, five are related to social media (including Slide, for which $ 182 million has been paid).
The high number of Google purchases is due to the fact that the company prefers to buy small startups. Sometimes this strategy proves its extreme effectiveness. For example, the small companies Keyhole and Where2 have become key elements of the Google Maps product.
Experts say that Google has accumulated a large mass of cash in bank accounts that need to be invested somewhere. Judging by the latest financial statements (form 10-Q
), the company holds about $ 11 billion in accounts. However, other large IT companies have the same problems with excessive cash.
Buying startups at Google is formally managed by lawyer David Lowe
, who took the lead in 2008 and now holds the position of vice president of corporate development.