For a few years now, Google has acquired dozens of companies every year.That’s not going to change any time soon.
But last year, when cofounder Larry Page took over as CEO again, the type of acquisitions Google makes changed.
Now, according to an article by Slate’s Farhad Manjoo, who talked to Google M&A boss David Lawee, instead of buying “interesting” companies with “interesting” founders pursuing “interesting” problems, Google will only buy companies that will definitively propel one of Google’s seven main product lines forward.
Those product lines are: search, advertising, social networking, Android, Chrome, YouTube, and local mobile commerce.
The pattern started to show last year, when Google bought ITA for search, Motorola for Android, Next New Networks for YouTube, and Zagat for local mobile commerce.
Another big change – that may seem like a no-brainer! – under Page, Manjoo says, newly acquired teams are no longer allowed to “disappear without ever producing a product.”
Ah, to own Internet’s most perfect monetization engine and not have to have start worry about these kinds of common sense changes until decade number two…