Google Inc. becomes top dealmaker thanks to acquisitions, investments and occasional divestiture

Google Inc. has been reported to be not only the leading Internet search engine, but has also been declared as top dealmaker. According to data compiled by Bloomberg in January 2014, Google has accomplished more deals than any other company in the world over the past three years. The second place in the ranking is taken by the advertising firm WPP Plc, and the third – by the worlds largest chipmaker Intel Corp.

Google has been spurred beyond Web advertising after its co-founder Larry Page took the post of Chief Executive Officer of the company in 2011. The companys cash, which amounted to total of 58.7 billion dollars in the latest quarter, was used by Page for certain investments in connected devices, business services and mobile applications. A person familiar with the matters revealed that the mergers and acquisitions group, led by Don Harrison, has expanded by at least 50% over the past two years.

One of the partners at the venture company Canaan Partners – Maha Ibrahim said for Bloomberg: “It is absolutely starting to feel like a deal machine. Because they have such a diverse base of interests, you see these acquisitions coming out of left field that have very little to do on the surface with the ad business.”

Google Inc. was said to have been involved in 127 deals over the last three years, including purchases, investments and the occasional divestment. According to data compiled by Bloomberg, this more than doubles the number of deals recorded in the period from January 2008 to 2011. The total value of the companys deals increased to 17.6 billion dollars but still remained below the deals value of some companies such as General Electric Co. (19.9 billion dollars) and Blackstone Group LP (62.3 billion dollars). These numbers include investments coming from other companies but excludes some venture deals that have not been disclosed.

Dave Goldberg, who is the Chief Executive Officer of SurveyMonkey, said for Bloomberg: “Google has been a very good acquirer as they have been good at integrating and benefiting from their deals.” One of the partners at BlueRun Ventures and also an investor in Waze – John Malloy commented: “Theyre very good professional acquirers. They know what theyre doing.”

Google Inc.s shares settled 0.38% lower on Monday at $1 172.93 per share, marking a one-year change of +49.91%. According to CNN Money, the 41 analysts offering 12-month price forecasts for Google Inc. have a median target of $1,310.00, with a high estimate of $1,450.00 and a low estimate of $964.00. The median estimate represents a +11.69% increase from the last closing price.