Who is More Acquisition Crazy – Google or Facebook?

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Lately, Facebook and Google have been in the news quite a lot. Why? Because both of them have acquired so many companies and most of them are just startups.  Google and Facebook believe that these acquisitions bring them closer to their goal and help them in achieving it sooner. So which of them is interested in more acquisition shopping? Let’s take a look.

Ever since 2009, Google Ventures has acquired over 225 companies.  In fact, last year, their average rate was greater than a deal per week.  Studies show that this year might be on an even greater pace.  The Google Ventures deal was worth $300 million, which is not that high considering that in terms of revenue, Google Ventures has brought in over $59 billion and has cash worth of $57 billion.  In the next few years, Google Ventures plans to invest $1.5 billion with Google adding to the tally of investments a cool $300 million per year, and Google is hopeful that the revenues will be higher than last year.

As for Facebook, they recently acquired Oculus media in a deal that was valued at $2.3 billon.  With WhatsApp, Facebook put in $19 billion and $ 1 billion for Instagram, which was acquired about two years ago.

Shares of both the companies have risen, but the figures are much better for Facebook which has enjoyed an increase of 111%. Google also experienced an increase, but this is around 40%, which is much less than Facebook’s impressive numbers.

So what do all the stats mean? As far as Instagram is concerned, the investment was worth it for Facebook, but it is too early to say anything about WhatsApp right now. As for Oculus Media, the deal probably is not worth it or so the industry experts claim. The company was just established with an investment of $2.4 million, and if Facebook bought this for over a billion, the deal is probably not that good.  Still, Facebook has many users and they are still growing.

Google is playing a really smart game. They are not investing huge amounts, but are making quite impressive returns. Their stocks may not be doing that great when compared to Facebook, but maybe time will change that. After all, Google does have more money to spend than the social media platform.

Source: www.dailyfinance.com

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