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Google’s acquisitions – a European take

The graphic towards the bottom of this post was on Techcrunch this morning.  It shows Google’s acquisitions over the last nine years.  It is interesting for a number of reasons (not least size, (sub) sector, accelerating rate, and reason for acquiring) but I’m going to focus on geography.

I did a bit of analysis on the location of the last thirty acquisitions which takes us back to July 2007 which, yielded this pie chart.

image

The US bias is stark.  I am sure Google is aware of all the great innovation going on outside the US and will be looking to change this balance in favour of the rest of the world (indeed I know some of the people inside Google who are trying to make that happen), but this shows how much there is to do.  I’ve listed the companies by geography at the end of the post.

If anybody has any pointers I’d be interested to see comparable data for the other big tech acquirers, particularly in the internet space, and also for small internet acquisitions in the UK/Europe generally.

UPDATE: Ian Darroch just sent me some Cisco data he pulled together a few years ago.  Of the 106 acquisitions they made from 1993 to 2005 85% were in the US (90 out of 106).

google-acquisitions

Location of the last 30 deals

US – Jambool, Slide, Instantiations, Metaweb, ITA, Invite Media, Simplify Media, Global IP solutions, Bump Technologies, Agnilux, Episodic, Docverse, Picnik, Aardvark, Appjet, Teracent, Gizmo5, Admob, reCAPTCHA, On2, Omnisio, Postini, Image America

Israel – LabPixies,

UK – PlinkArt

Finland – Jaiku

South Korea – TNC

Unknownd – reMail (Y-Combinator company though, so probably US), Zingku

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  • http://twitter.com/jkaljundi jkaljundi

    Could it be that merging acquired teams abroad is still a pain, even if the service is great? Quite many of these have been talent acquisitions, which then would have to be relocated to Silicon Valley. Which gives us a question, how much should startups think of these location issues from day one?

  • Anonymous

    Hi Nic, I am not sure that an analysis of other tech companies will paint Europe in a better light either. There are a number of issues at play here – not least; visibility, access to smart capital, route to market/ market size and attitude to risk. We also consume a lot of US orientated tech/early stage content which helps with awareness and is badly lacking this side of the pond (despite the efforts of Techcrunch UK etc) Alan

  • http://www.theequitykicker.com brisbourne

    The other factor is proximity to HQ – it is much easier to get acquired when you have friends in high places.

  • http://www.theequitykicker.com brisbourne

    I think that is a factor. It is easy for a big company like Google to kill the companies it acquires and the further away they are from HQ the easier that is.

  • http://twitter.com/jkaljundi jkaljundi

    Having beers with right people always helps. Trust issue.

    Related:
    http://www.quora.com/Google-company/How-does-the-decisions-on-acquisitions-made-at-Google

  • http://www.gamesbrief.com Nicholas Lovell

    I asked Paul Heydon of Avista partners why he thought Bigpoint had not sold yet (large German browser-based games business) when a tthe same time Playdom went for $525m +$200m earnout. His answer: they were a US company with US revenues.
    SOmetimes I do think that US companies are very blinkered…

  • http://www.theequitykicker.com brisbourne

    I can understand their reasons – as we know, acquisitions are hard and geographic distance, cultural differences and language differences all add to the risk.

    What we really need is large indigenous digital media businesses.

  • http://www.startup-book.com Herve Lebret

    I had done a similar analysis with Cisco and it looks quite consistent. I am not as suprised as you are: the USA and in particular Silicon Valley remain places where start-ups are closer to acquirers, geographically and culturally. It is not about innovation only. You can check http://www.startup-book.com/2009/11/04/ciscos-ad/

  • http://www.startup-book.com Herve Lebret

    One more thing and an apology. I had not seen your update in your blog mentioning Cisco already. As a complement, from 1993 to Nov 2009, it was a total of 122 acquisitions in the USA out of a total of 139, i.e.87%

  • http://www.theequitykicker.com brisbourne

    Thanks for the additional data.

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