Google and Yahoo are buying startups wholesale and retail
There were times when firms invested millions of dollars in their own R & D units. Now it is much easier to buy ready-made technology together with its creators. Some corporations have been doing this constantly for many years. Recently, they were joined by Google and Yahoo, writes Wired .
Indeed, why strain? Own research work requires a huge amount of time and effort. Moreover, these developments can lead to nothing. Therefore, large corporations are increasingly choosing a simpler way: they buy a ready-made one. Some firms really specialize in buying startups.
For example, Cisco, the world leader in the telecommunications market, has already bought 107 companies over the past 12 years. And the market shows that this path is quite acceptable. The company is still in the lead, and its development can be described as successful, so Cisco continues to operate in the same style.
Purchases of other startups allow the company to expand its presence in new markets. For example, to enter the digital home equipment market, Cisco last year boughtScientific-Atlanta, a cable manufacturer, for $ 6.9 billion, twice the annual R & D budget.
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Other corporations are also carefully analyzing the market in order to choose a target for purchase. Last year, News Corp. entered the social networking market by buying MySpace.com for $ 580 million. The corporation liked the business on the Internet so much that it continued shopping: in May 2006, the online karaoke player kSolo.com and the news aggregator Newroo were bought. Other high-profile deals are also known to everyone: eBay Corporation has posted $ 2.6 billion for Skype's VoIP service.
Most clearly, the “shopping instead of development” trend manifests itself in Internet search technologies. The fact is that thanks to the boom of search advertising, the Internet giants Google and Yahoo have at their disposal a huge amount of money and are not shy about spending big.
Over the past year and a half, Google has acquired startups from Dodgeball, Urchin Software and Upstartle, thus expanding its presence in the mobile social networking markets, web analytics tools and web office tools. Yahoo, in turn, bought startups Konfabulator, Webjay, Upcoming.org, Flickr and del.icio.us. Thanks to this, Yahoo was able to offer new services on its portal: original graphic widgets, online playlists, an event tracking service, as well as photo and bookmark sharing services. However, neither Google nor Yahoo can match the number of purchases with its rich competitor Microsoft, which over the past year has already bought 24 companies, including the online bookmark service Onfolio.
This behavior of "financial bags" can not go unnoticed by small companies. Some of them initially build their business with the expectation of its future sale. Previously, the startup’s dream was an IPO and access to the stock exchange, but after the dot-com bubble and the history of the Enron scam, corporate rules on the stock exchange were tightened, so now not every company can decide on an IPO. There is only one way out - to sell one of the giants.
Indeed, why strain? Own research work requires a huge amount of time and effort. Moreover, these developments can lead to nothing. Therefore, large corporations are increasingly choosing a simpler way: they buy a ready-made one. Some firms really specialize in buying startups.
For example, Cisco, the world leader in the telecommunications market, has already bought 107 companies over the past 12 years. And the market shows that this path is quite acceptable. The company is still in the lead, and its development can be described as successful, so Cisco continues to operate in the same style.
Purchases of other startups allow the company to expand its presence in new markets. For example, to enter the digital home equipment market, Cisco last year bought
')
Other corporations are also carefully analyzing the market in order to choose a target for purchase. Last year, News Corp. entered the social networking market by buying MySpace.com for $ 580 million. The corporation liked the business on the Internet so much that it continued shopping: in May 2006, the online karaoke player kSolo.com and the news aggregator Newroo were bought. Other high-profile deals are also known to everyone: eBay Corporation has posted $ 2.6 billion for Skype's VoIP service.
Most clearly, the “shopping instead of development” trend manifests itself in Internet search technologies. The fact is that thanks to the boom of search advertising, the Internet giants Google and Yahoo have at their disposal a huge amount of money and are not shy about spending big.
Over the past year and a half, Google has acquired startups from Dodgeball, Urchin Software and Upstartle, thus expanding its presence in the mobile social networking markets, web analytics tools and web office tools. Yahoo, in turn, bought startups Konfabulator, Webjay, Upcoming.org, Flickr and del.icio.us. Thanks to this, Yahoo was able to offer new services on its portal: original graphic widgets, online playlists, an event tracking service, as well as photo and bookmark sharing services. However, neither Google nor Yahoo can match the number of purchases with its rich competitor Microsoft, which over the past year has already bought 24 companies, including the online bookmark service Onfolio.
This behavior of "financial bags" can not go unnoticed by small companies. Some of them initially build their business with the expectation of its future sale. Previously, the startup’s dream was an IPO and access to the stock exchange, but after the dot-com bubble and the history of the Enron scam, corporate rules on the stock exchange were tightened, so now not every company can decide on an IPO. There is only one way out - to sell one of the giants.
Source: https://habr.com/ru/post/4221/
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