Let’s have a look at Google’s rise to becoming the world’s largest advertising platform.
Google’s acquisition of Android is yet another example of the edge a corporation can gain by using mergers and acquisitions for horizontal integration. Android was a tiny company when Google bought it in 2005 for an estimated $50 million, Android enabled Google to create a platform in competition with Apple’s iOS — and an entirely new market for its advertising business. Google today makes an estimated $1 billion per year from mobile display advertising on Android.
Consider another one of Google’s early acquisitions, Applied Semantics, which the company bought in 2003. This relatively proportionately small deal (US$102 million) allowed Google to use contextual targeting technology to vastly improve its search capability — and ultimately helped make search-based advertising a massive market.
It is though, through careful change management and leadership at Google that allowed the corporation to bring the best out of those mergers and acquisitions. In order to truly capitalize on our Mergers and acquisitions, it is necessary to equip our new employees with the right skills, resources, vision, and culture in order to maintain synergy.
This is the kind of thinking that is needed in order to truly scale a company. If you would like to know more about how your company can rise above the rest you can visit our consulting page by clicking here.
If you wish to Google. Click Here.