Google seems to be expandig its future revenue streams by buying every potential break out tech company it can find. Everyone knows about the youtube purchase and that startup company called android back in 2005, that had a great idea for a mobile OS. As a matter of fact this is what they just picked up today.
This doesnt mean that google is the "bad guy" who is just picking up startups for the profit. Many of these companys do far better with google as an umbrella of sorts. Being part of google gives them access to resources that they would never have on there own and it still allows them the freedom and creativity they would have if they were on there own. Take android for instance Android phones are now the fastest selling smartphones on the market (yes even more than iphones). I have no doubt the company would still be doing great without google, just because of there open strategy and quality of there software, but i think that because its part of google it was brought to the masses alot sooner and integrates better with the plethora of google services many of us use on a daily bases, such as gmail and google maps.
Now this past week google has been in talks with internet coupon giant Groupon for a possible buyout between 5 and 6 Billion. Sadly those who wanted to see this deal go through are out of luck it was just called off yesterday. Check out the article here.
This brings up a serious question for groupon now because as competition increases (especially in the internet startup business) its only going to get harder and harder to turn a profit, even though its been doing very well so far. And it wont make a decision about an IPO until next year. What do you think the best option for Groupon is now that it wont have the protective umbrella of google to back it up?
Interesting! Google does provide a sort of umbrella effect to companies that they acquire. They seem to do quite well. The question here is, will GroupOn be better off with or without them? They are projected to make over 500 million dollars this year and is becoming “the fastest growing company ever” according to Forbes. Generating that money for a few years and investing it will overshadow the 5 to 6 billion that Google offered to buy them out. Assuming that GroupOn continues to do well with their outstanding marketing which has a 98% success rate with their customers, they will be well on track to have that IPO that they have been saying for 2011. Great post, thanks Tommy
ReplyDeleteWow, I never thought about it like this until you read what you wrote. Is Google a power hungry animal that wants to turn into an ultimate Monolopoly of all things technology? Let's think real quick... They started out as a search engine and now have their hands in web browsers, mobile phones, tablets, maps, Youtube, almost acquired Groupon, they have a working Operating System..... Wow! They do want to own everything!!!!
ReplyDeleteAs for the growing competition out there in this market it makes things better for the consumer. Competition is GOOD! Makes everything cheaper for us and makes companies provide us with better service.
As for Google.... I got my eye on you!