In 2005, Google was widely regarded as an ad-supported search engine company. But 15 years later, to this day, Google has achieved the best acquisition ever. He has bought ownership of small startup company Android.
As everyone knows, the deal to buy ownership of Android was a big achievement for Google. If he hadn’t acquired Android, it probably wouldn’t exist today.
Using the skills of a new Android team member, Google took three years to develop the operating system for mobile devices. Thus, in 2008, the first public version of Android, T-Mobile G One / HTC Dream, was unveiled.
Today, Android is the most popular operating system in the world. There is a huge difference between other OS and this OS. As of December 2019, 74.13 percent of new smartphones used the Android OS, according to research firm Statista. In addition, Android overshadowed installed operating systems such as Microsoft Windows Phone, Nokia’s Symbia and Blackberry.
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In May 2019, Google revealed that there are more than two and a half billion active users of Android. That number has risen since then. Apart from smartphones, Android is used in smartwatches, tablets, smart TVs and many other devices today. Probably because of Android, Google has established itself as the largest and most influential company in the world. But the journey has not always been easy for Android.
Google bought the ownership of Android from the autonomous company Android Corporation. The company was founded in 2003, a few years before it was acquired by Google. Andy Rubin, the famous co-founder of Palo Alto Company, got the nickname of Android while working for Apple Company. Seeing his attachment to robots, his colleagues gave him such a nickname.
In 1999, Rubin helped set up a company called Danger. The company unveiled the first Proto smartphone, The Danger Hiptop. The phone was rebranded and sold by T-Mobile in 2002. Rubin split from Danger in 2003 to start an Android company. He was accompanied by other co-founding friends at the time, Rich Miner, Nick Sears and Chris White.
At the time, the company was founded with the goal of building an operating system for digital cameras. And the same idea was shared among investors. But assessing the sinking market for digital cameras and the scenario that mobile phones are replacing them, the company announced a change in its design. Rubin and Tim decided to change their focus and created an open source OS for the phone.
But for a few moments, the Android Company seemed to shut down completely. In a miserable situation, Rubin proposed to another investor, Steve Pearlman, for extra money. Pearlman went to the bank and brought ten thousand dollars in cash and gave it to Rubin. Rubin raised a lot of money to keep Android running for the day after that cash transaction.
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But to get to the next deal, the Android Company needed to survive. Google, meanwhile, invited Android co-founders to a meeting in January 2005 and said it wanted to help the company.
At the second meeting, Android co-founders showed Larry Page and Sergey Brin of Google a prototype of their mobile operating system. Google then immediately offered to buy ownership of Android. According to official documents, the deal was completed for 50 million dollars.
Page and Brin decided to buy Android in the belief that the mobile operating system would expand its core search feature and expand Google’s business, which was only doing business on personal computer platforms at the time.
On July 11, 2005, the Android team officially moved to Google’s Campus Mountain View in California. July 11 is the official date of Google’s acquisition of Android. But the news of the acquisition of Android did not go public for a few weeks, until August 2005.
Why is Android a great acquisition of Google?
The value of 50 million is negligible compared to the success that Google has had in the 15 years since the acquisition of Android. In fact, when the company completed the entire deal in 2005, it paid Android 130 million.
A year later, Google spent 1.65 billion to acquire YouTube. At the time, there was much controversy over the value of YouTube’s acquisition. However, the popularity of YouTube has made up for that today. But compared to today’s success of Android, the cost of its acquisition was negligible.
Some other acquisitions by Google have not been successful. Owning Motorola, which he bought for 12.5 billion in 2011, was his worst move. The company had to sell the company to Lenovo for 2.90 billion after three years. Even today you can find the story of some of his failed acquisitions in Google’s grave.
Some of Google’s acquisitions are still in progress. Nest Lab, which he bought for 3.2 billion in 2014, has started to keep pace with the slowdown. Google has big plans in the coming days for this company which has brought Nest Lab under its umbrella.
Google also plans to acquire Fitbit for 2.10 billion. But only time will tell what the outcome will be. But no matter how much and how much the company invests, it will probably never get the same return as Android.
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The 50 million startup’s turn today is unprecedented. After 15 years, Android has not only become a major acquisition, it has become a major achievement of the overall technology industry.
