As Google nears 200 M&A deals since its YouTube acquisition back in 2006, we visualize the tech giant's top acquisitions.
Eleven years ago, tech giant Google announced its largest acquisition since it incorporated in a Menlo Park garage, paying $1.7B for YouTube, a video platform that at the time had fewer than 100 employees.
This includes six $1B+ acquisitions, such as marketing solutions provider DoubleClick ($3.1B, 2007) and navigation app Waze ($1.15B, 2013). More recently, the company made a big push into AI, acquiring UK-based DeepMind ($650M, 2014).
Some of Google’s deals have met with mixed results, especially its bets on hardware, including the company’s two largest acquisitions to date: Motorola Mobility ($12.5B, 2012) and Internet of Things startup Nest Labs ($3.2B, 2014). The latter could receive a boost from tighter integration with Google Home (as announced during Google I/O earlier this month), while the former was sold to Lenovo in October 2014 for less than a quarter of its acquisition price (approximately $2.9B).
Despite varying success, Google’s latest announcement confirmed its increased focus on hardware as it made another significant deal in the space, buying part of HTC’s Pixel Smartphone Division for $1.1B last month. This was the largest of the 11 acquisitions Google has made this year to date.
With its ever-growing list of acquisitions, we created a visual timeline of Google’s largest deals.
Please click to enlarge.
Google’s Biggest Acquisitions
Here are Google’s 11 largest acquisitions since 2006:
- Motorola Mobility ($12.5B, 2012) is Google’s largest acquisition to date. On top of getting access to thousands of patents, key benefits expected from this transaction included securing the future of the Android ecosystem by leveraging Motorola’s smartphone production capabilities.
- Nest Labs ($3.2B, 2014) marked Google’s entry into the internet of things (IoT) space. Acquiring the producer of connected thermostats and smoke detectors enabled Google to increase its household footprint, while also providing expansion opportunities for its Android ecosystem.
- DoubleClick ($3.1B, 2007), an ad serving company, was Google’s largest acquisition at the time, and was intended to complement Google’s existing ad business. The deal has been instrumental in giving Google a foothold in the lucrative display advertising industry, allowing the company to facilitate programmatic ad-buying through its own ad exchange.
- YouTube ($1.7B, 2006), the leading video-sharing platform, was Google’s first $1B+ acquisition. Through this purchase, Google anticipated the shift from traditional media like TV to online viewing, while also increasing its traffic and growing its ad business.
- Waze ($1.15B, 2013), an Israel-based mapping service startup, brought social traffic data that helped Google improve Google Maps functions such as accurately predicting travel time and suggesting navigation routes.
- HTC – Pixel Smartphone Division ($1.1B, 2017) is Google’s latest push in hardware. While the acquisition did not include any production facilities, it did leave Google with a significant part of HTC’s smartphone team, underlining the Android maker’s focus on competing with iPhone maker Apple.
- AdMob ($750M, 2009), a mobile advertising company founded in 2006, was purchased by Google in anticipation of the massive proliferation of mobile ads.
- ITA Software ($700M, 2011), a US-based airline IT and services provider, was acquired by Google to expand the tech giant’s search capabilities and to power Google Flight Search.
- DeepMind ($650M, 2014) is Google’s most significant acquisition in the deep learning space. This London-based early stage company was founded in 2010 and had fewer than 100 employees at the time of the acquisition.
- Postini ($625M, 2007), a communications security and compliance startup, was acquired by Google to increase the security of its apps. Prior to the deal, Google already used Postini solutions for its spam filtering product included in Gmail.
- Apigee ($625M, 2016), a California-based API platform provider, was acquired by Google to help expand its enterprise services and improve its cloud offerings.
Key takeaways from the infographic:
- Google spent over $26B for its top 11 deals.
- Google’s $12.5B acquisition of Motorola Mobility in 2012 was by far its largest deal.
- The smallest deals, tied for 10th place, were Postini and Apigee, which were both valued at $625M.
- 6 out of the top deals pictured had valuations greater than $1B.
- YouTube ($1.7B, 2006) was the first of Google’s $1B+ acquisitions and remains its fourth largest deal.
- These deals reflect Google’s strategy evolution, from AdTech (AdMob, DoubleClick) in the late 2000s to mobile (Motorola Mobility, Apigee) and AI (DeepMind) in the 2010s.