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Thursday, September 16, 2010

Is Google's acquisition strategy still working?

With the support of the plenteous cash flow, Google use an aggressive acquisition strategy to expand its business. Google has acquired over 75 companies with its largest acquisition being the purchase of DoubleClick, an online advertising company, for US$3.1 billion.

However, the acquisitions also caused some troubles for the gaint company. The Federal Trade Commission may file an anti-trust complaint against Google over its acquisition of Admob, for $750 million. It means that Google will find it difficult to make large acquisitions in the future. Bloomberg reported that the FTC is asking for sworn statements from competitors and advertisers. This action usually precedes the filing of a lawsuit seeking to block the $750 million AdMob purchase announced in November...

Google has to rethink not only its mobile ad strategy but also its acquisition strategy.

http://www.zdnet.com/blog/foremski/google-will-have-to-rethink-its-acquisition-strategy/1244

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