) spent nearly $300 million on assets and acquisitions in the
first quarter of 2013. According to
, the total expenditures came to $291 million.
Roughly half of that money went to patents and developed
technology; an additional $125 million was used to acquire
Channel Intelligence Inc., which created valuable online
marketing tools for retailers.
Google is believed to be making these acquisitions in an
attempt to diversify beyond the company's core businesses, which
include the Google.com search engine.
Previously, Google has spent billions of dollars acquiring
firms that bolster the search side of the business, which has led
to an increase in ad revenue. For example, Google paid
to acquire YouTube in October 2006.
At the time that may have seemed like a steep price for the
company, which was merely a rising star in the growing world of
online video. Today, YouTube has become the world's largest
online video site.
Last year Google
finalized its plans
to purchase Motorola Mobility for $13 billion. The acquisition
came as a surprise to the tech industry, which did not expect
Google to buy an electronics manufacturer.
While Google has said that it does not plan to conduct its own
manufacturing, the company may be warming up to the idea now that
the Nexus line of devices (which is currently produced by
third-party manufacturers) is gaining in popularity.
Google's M&A strategy has been significantly different
from the strategies employed by Apple (NASDAQ:
) and Samsung, which tend to acquire smaller firms with the goal
of utilizing a particular technology. Amazon (NASDAQ:
) seems to be taking a similar route.
In that regard, Google has the most in common with Microsoft
). The Windows maker has not shied away from big
Two years ago Microsoft paid
more than $8 billion
to acquire Skype. The company has been rumored to acquire Nokia
) for more than two years. In January, Dell (NASDAQ:
added to the list
of potential acquisitions.
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
louis(at)benzingapro(dot)com. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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