Keressa Chestnut Dr. Tillman BUS 508 February 16th, 2014
Google is a publicly traded company that was founded in 1998 by Larry Page and Sergey Brin. Google’s name derived from the mathematical word “googol,” which is defined as the number one followed by one hundred zeros. Larry Page and Sergey Brin received a check in the amount of one hundred thousand dollars from Sun’s co-founder Andy Bechtolsheim to start-up Google. Google is headquartered in Mountain View California and has over twenty thousand employees. Google became a publicly traded company in 2004, offering only twenty million shares of Class A common stock (www.google.com). In 2006, Google acquired YouTube and sixty hours worth of videos are uploaded every minute and in 2007, they announced the development of the Android operating system. In 2008, Google introduced Google Chrome which is a freeware web browser. Today, Google celebrates having over one billion devices activated on their Android operating system. Google is a company that is on the fast track and is acquiring many other companies, but these acquisitions do not always have positive effects. Acquisitions
In the year 2000, Google introduced a self-service program used for creating online ad campaigns called Adwords. Over the last ten years, Adwords has helped thousands of businesses grow and be successful. Since 2010, Google has been acquiring more than one company a week. Motorola Mobility is a mobile device manufacturing company that Google purchased for about $12.5 billion dollars in 2011 and this is Google’s largest acquisition to date (www.fcc.gov), but Google has acquired over one hundred companies since 2001. Motorola Mobility was formerly known as Motorola’s cellular phone division, and is known for pioneering the flip phone with the StarTac in the mid-1990s. However, in early 2011, the company was spun off into a separate company known as Motorola Mobility. August 2011, Google announced that it would acquire Motorola Mobility, subject to regulatory approval. Google wanted to acquire the company’s portfolio of patents so it could adequately protect other Android vendors from lawsuits (www.nytimes.com/finances). This was a particularly good move for Motorola Mobility because they had suffered five straight quarters in the red. These are two reasons why Google and Motorola Mobility’s acquisition was made. Effects of the Acquisition Google’s acquisition of Motorola Mobility was met with great approval and acceptance, but there have been some negative effects to the acquisition too. When the acquisition was complete, Google replaced Motorola Mobility’s CEO Sanjay Jha with their former Senior Vice President Dennis Woodside. Google also downsized by closing a third of Motorola Mobility’s foreign locations, and laid-off over four thousand employees. Google also suffered a huge loss, because they purchased Motorola Mobility for $12.5 billion but they sold a portion of the company to Arris Group for $2.35 billion and the other portion to Lenovo for $2.91 billion, so they are in the red for over $6.5 billion. Even though Google has made millions of dollars with Motorola Mobility, there have been a lot of negative impacts from this acquisition. Organizational Structure The organizational structure that has resulted from this acquisition is that of strategic and portfolio agility, because Google recognized an opportunity to use the portfolio and...
References: 1. www.google.com
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