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MERGERS AND ACQUITITIONS
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ContentsCASE STUDY.....................................................................................................................................................................2
Google's acquisition of Android.......................................................................................................................................2
REFERENCES & SOURCES:................................................................................................................................................6
, CASE STUDY
Google's acquisition of Android.
DISCUSSION
Alphabet Inc.'s (GOOGL, GOOG) a.k.a Google's purchase of the Android operating system is without a doubt one of
the most successful and significant business deals in the history of the technology industry. This case study looks at
how Google acquired the unproven business Android Inc. in 2005 and, despite difficulties, one of its kind example of
mergers and acquisitions, and being a plain risk, managed to make it the most widely used mobile operating system
on the globe.
Background:
Andy Rubin and three other co-founders formed Android Inc. in 2003 with the goal of establishing an open source
operating system for digital cameras. They quickly realised, however, that the market for standalone cameras was
diminishing and chose to switch to developing an OS for smartphones instead. They encountered numerous
problems, including a lack of capital, rivalry from existing players such as Microsoft, Nokia, and BlackBerry, as well as
technological difficulties in designing a new platform from the ground up.
Google, on the other hand, was already a market leader in internet search and advertising, but it sought to increase
its presence and influence in the mobile area. Google viewed the potential of Android as a way to provide a more
open and configurable alternative to the existing closed and proprietary mobile platforms. Google also desired that
its services and products, such as Gmail, Maps, etc., be accessible and integrated on mobile devices.
Google purchased Android from Android Inc. for approximately $50 million on July 11, 2005, but the news was not
made public until August of that year. The Android team relocated to Google's Mountain View headquarters and
continued working on their project with Google's supervision and support. Google offered them the freedom and
resources they needed to pursue their idea of developing an open source mobile platform that could be used by any
device manufacturer or carrier.
The first public version of Android was released in 2008 on the T-Mobile G1/HTC Dream, the first smartphone to run
the operating system. Since then, Android has evolved in terms of features, functionality, performance, and
adoption at an exponential rate. According to Statista, as of February 2022, Android had a market share of 69.74
percent of all smartphones, making it the most commonly used mobile OS in the world. Android has also gone
beyond smartphones to include tablets, wearables, smart TVs, and other devices.
In reality, just over a year later, Google paid $1.65 billion for YouTube. Android provided Google with the mobile
operating system (OS) it required to compete in the developing mobile industry with the likes of Apple and
Microsoft, as well as to spread their reach far beyond desktops. But that's another story.
Google's acquisition of Android was a win-win situation for all sides. Android has enabled Google to reach billions of
consumers worldwide with its services and products, as well as generate cash from advertising and app purchases on
the Google Play Store. Google has given Android financial stability, technical skill, global distribution, and brand
recognition. Google and Android have helped to influence the mobile industry and change the lives of millions of
people.
CRITICAL ANALYSIS
Mergers and acquisitions (M&A) have long been used by businesses as a strategic endeavor to obtain a competitive
advantage, increase market reach, and enhance product ranges. This part examines Google's acquisition of Android
from a critical standpoint, concentrating on the application of M&A principles and theories within this specific
organizational instance.
Google purchased Android in 2005, a small start-up focused on building an open-source operating system for mobile
devices. Google was able to enter the quickly rising mobile market and compete with industry titans such as Apple
and Microsoft as a result of the acquisition. Google's considerable software capabilities, along with the Android
operating system, established Google as a prominent participant in the mobile sector. Synergies are the advantages
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