Eric Schmidt Speaks on Google’s Acquisition Strategy

Google’s CEO Eric Schmidt is in a very great place right now; with Google+ already at 10 million users in its beta and startups wanting to build on top of Google+, Schmidt is in a prime position to acquire lots of smaller companies they feel are valuable to what Google is all about; According to Techcrunch, Schmidt talks about how tens of millions of dollars are ready to be spent for such ventures-

“You could image the scenario where the social platform is so successful that you’ve got startups that are building on top of Google + that are so incredibly sexy and exciting that we would pay top dollar very fast … That’s a great scenario because then you know you’re winning,” he said.

According to Schmidt, Google M&A made the decision last year to accelerate the acquisitions of companies below the HSR threshold, or the amount that is subject to FTC notification requirements and a waiting period (currently $66 million). Companies like calculated the amount of money it was willing to pay for the company; Namely, the value of a deal equals the value of the team plus the value of the year it would spend a Google team to create the same product. He emphasized that M&A at Google was very bottoms up, “A product manager that has a problem and [needs to] solve that problem” is the raison d’être of a potential acquisition.

So reader, what do you think this means for Google? Will they finally have control over most of the revenue the internet can potentially generate? Top of the Burg thinks so, and we’re rooting for the Google team to beat Facebook at their own game since we rank so high with them personally.

Jonathan Hawkins

Jonathan Hawkins

Jonathan Hawkins is founder and CEO of Topoftheburg. Since a young age he has been involved in website design and search engine marketing for business owners. at Topoftheburg, LLC
Jonathan Hawkins
Jonathan Hawkins
Jonathan Hawkins

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