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Thought Google was acquiring too many companies? They've barely started!
Google’s shopping spree has raised many questions. Will the acquired services come to Android and other Google products? Will they work separately? What’s Google’s plan? We can assume all day, but today we are finding out Google is just getting started with the acquisitions.
Google is planning to take $20-$30 billion of its international profits and invest them all in non-US company purchases. Those are a lot of billions! And we are not counting the U.S. acquisitions they may have in the future.
Why is Google doing this?
For one, Google is not shy of expanding its market. It may be a good idea to bring foreign projects and great minds from everywhere. There is more than that in this equation, though. Google expressed its plans in a document to the United States Securities and Exchange Commission. It turns out bringing all that external money into the US would make for a huge tax bill, so it could be better to re-invest it outside the USA.
Acquisitions and the future
As we mentioned above, Google has been on a huge shopping spree. They now have their hands on connected thermostats (NEST), robots (Boston Dynamics), and all kinds of services like Waze and QuickOffice. You can find a longer list of acquired companies here. This document also mentions Google tried to purchase a substantially large foreign company recently. This deal would have gone for $4-$5 billion. No company name was mentioned, and we really have no idea which one it could have been.
Regardless, what we are seeing here is quite a phenomena. $30 billion in acquisitions is no small number. Is it beneficial, or will it just turn Google into a mess? Of course, we could see Google’s services being improved and new technologies being created successfully. The fact is, it could also be harmful for a company to spread itself too quickly. What do you think?