) has recently entered into a definitive agreement to acquire San
Francisco-based Flutter, which is involved in the development of
gesture recognition technology. Flutter software interprets
gestures made by users in front of their webcams to control
Flutter co-founders Mehul Nariyawala and Navneet Dalal both
worked at Google after the company acquired their previous
startup Like.com in 2010. Google will retain Flutter's six-member
team. Flutter makes an application for
) Mac and
) Windows operating systems that lets people control programs
like iTunes and Quicktime through gestures captured on a webcam.
In the future too, it will continue to support the applications
of Apple and Microsoft.
Images captured by the Flutter app do not leave the person's
computer, nor are they saved permanently. Through an extension to
the Chrome browser, it also works with Google's YouTube service,
), Grooveshark and Pandora. Over a period of time, Flutter's
cutting-edge technology could be incorporated into some of
Google's technically advanced products like the Chromebook or the
Google Glass system.
The acquisition is believed to be closed though the financial
details have not been made public. A company of Google's size
would give Flutter all the resources to further research and
develop this gesture recognition technology. In return, Google
could use the technology in its future products.
Google is a market leader in online advertising and it has been
trying to explore various ways to diversify its revenues and
fight competition. Google continues to acquire smaller companies
with specialized technology to boost its different offerings. In
Feb 2013, it acquired Channel Intelligence for $125 million to
boost its e-commerce business.
Earlier this year, it acquired an infrastructure startup
company, Talaria Technologies, to boost its cloud offerings.
Google also acquired a mobile mapping and navigation company -
Waze Inc. - for about $1.1 billion.
Google recorded a profit of $3.23 billion or $9.54 a share in the
second quarter of 2013, up from $2.79 billion or $8.42 a share in
the year-ago period. Total revenue grew to $14.11 billion, up
about 19% year over year.
The search ads and other commercial products related to web
content accounted for most of Google's revenue, which is expected
to approach $60 billion this year. The company has expressed its
intention to increase investment in its core products in the
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Currently, Google has a Zacks Rank #3 (Hold).