Semi-Organic GrowthTactics and Strategies Behind Google's Success
An in-depth examination of Google's innovative approach to M&A Semi-Organic Growth presents a unique analysis of Google's distinctive expertise in the area of mergers and acquisitions, derived from more than 150 acquisitions carried out over the company's short history. While organizational growth has traditionally been characterized as organic (internally generated) or inorganic (from acquisition), this book examines Google's semi-organic strategy for accelerating product and service revenue, explained through a unique sector/subsector classification scheme that dynamically maps the media, Internet, and technology platform markets. You'll gain insight into Google's disclosure strategies for private company transactions, and more importantly, their methods for integrating acquisitions into product and service offerings to achieve ecosystem synergy. Unique perspective reveals the lessons learned along the way from both successes and failures, and the companion website gives you access to the tools that help you implement what you've learned. Google's extensive use of M&A as a growth strategy has been in sharp contrast to the practices of rivals like Apple, and further contrasts with the failures of many other companies in corporate business development. This book shows you the thinking behind the company's successful methods, and demonstrates the mechanisms behind the success. Learn why corporate M&A activity often fails to add value Delve deep into the complex dimensions of M&A integration Discover what Google has learned through specific deals Consider innovative integration methods that foster synergy Google is an iconic, premiere company, and it didn't happen by accident. Their success is driven by their innovative approach to strategy in all areas, and their M&A expertise has been a major contributing factor. Semi-Organic Growth takes you through the core workings of Google M&A to provide insight into successful strategy for the modern market.
Preface ix Acknowledgments xiii CHAPTER 1 M&A Success and Failure 1 CHAPTER 2 Imprinting Semi-Organic Growth 17 CHAPTER 3 Google versus Apple: M&A Paths Diverge, then Converge 31 CHAPTER 4 M&A Market Modeling 45 CHAPTER 5 Google Media Deals 63 CHAPTER 6 Google Internet Deals 77 CHAPTER 7 Google Technology Platform Deals 91 CHAPTER 8 Failed or Shuttered Deals 105 CHAPTER 9 Disclosure versus Secrecy 119 CHAPTER 10 Forms of Consideration 133 CHAPTER 11 Contingent Consideration 147 CHAPTER 12 Dimensions of M&A Integration and Semi-Organic Growth 161 CHAPTER 13 Acqui-Hires Enhancing Google Offerings 177 CHAPTER 14 Competitive Deal Constellations and Ecosystem Synergy 197 References 211 About the Website 213 About the Author 215 Index 217
GEORGE T. GEIS teaches at UCLA Anderson in the areas of corporate business development and entrepreneurship. He has been voted Outstanding Teacher of the Year at UCLA Anderson five times. Currently, he is faculty director of Anderson's Mergers and Acquisitions Executive program. Geis has also taught mergers and acquisitions at the Haas School, University of California, Berkeley.
Since the beginning, Google has been a highly successful experimental lab, not only for products and services but also in using M&A to further its overall strategy. Written by George T. Geis—a noted expert in the field of M&A—Semi-Organic Growth offers an in-depth analysis of Google's distinctive expertise in the area of mergers and acquisitions and shows how M&A activity became a core element in Google's ongoing ability to thrive. Traditional organizational revenue growth is characterized as organic (internally generated) or inorganic (from acquisition), and this book highlights Google's unique use of a blended, semi-organic strategy to accelerate product and service revenue. Semi-Organic Growth clearly illustrates how Google's M&A moves can be explained by dynamically mapping the media, Internet, and technology platform markets. Effective market modeling dynamics are illustrated with graphics that offer an appreciation of the important categorical M&A dimensions and help to visualize deal constellations. By tapping into these winning market-modeling techniques, any company can increase its core competency in M&A. The author reveals why Apple and Google traditionally applied dramatically different corporate philosophies to the role of M&A and explains why Google's acquisition of Applied Semantic was a watershed transaction. Semi-Organic Growth includes profiles of many of Google's most successful acquisitions and examines why others have failed. The text contains an analysis of the acquisitions that Google has made to strengthen its position in Internet search, accelerate its move into a range of additional Internet products and services, and offers a detailed market model to explain Google's Internet-related purchases. In addition, the companion website provides videos designed to add to your understanding of the key concepts found in a given chapter. Semi-Organic Growth explains how acquisitions have played a key role in extending Google beyond its core search and advertising business to an ever-expanding technology platform for new products and services. It walks you through the core workings of Google's M&As and offers keen insight into an effective strategy for today's competitive marketplace.
Praise for Semi-Organic Growth "As a long-time investor in many companies, including some that have been acquired by Google, this is the most extensive analysis of the M&A activity of any company I've ever seen. It's a fascinating look into one of the ways Google has built their incredible business, and a must-read for anyone in the technology industry." —Brad Feld, Foundry Group Managing Director and Techstars co-founder "This in-depth study of Google's M&A activity is remarkable for its rich detail and its synthesis of practical insights. Google is one of a handful of firms who define the leading edge of M&A practice in technology. If you are hunting for the direction of M&A today, George Geis' book is loaded with clues." —Robert F. Bruner, Dean and Charles C. Abbott Professor of Business Administration, Darden School of Business, University of Virginia "M&A is a critical tool for organizations looking to grow, evolve, and stay a step ahead in a highly dynamic and competitive marketplace. Geis provides fresh insight and perspective for corporations on how to craft a winning strategy, including what works and what doesn't." —Joshua Rosenbaum, Managing Director, RBC Capital Markets and co-author of Investment Banking, Second Edition: Valuation, Leveraged Buyouts, and Mergers & Acquisitions Discover how Google became an expert at M&A and why they continue to thrive Semi-Organic Growth + Website is a hands-on resource that offers a probing look at why Google has become an expert at mergers and acquisitions and offers an analysis of how the company developed their winning business strategy. George T. Geis—a noted expert in the field—examines Google's unique semi-organic strategy for accelerating product and service revenue, explains why Google continues to thrive, and reveals why so many other organizations don't have the key to successful M&A. Semi-Organic Growth is filled with valuable lessons learned from Google's many M&A transactions. The author includes an exploration of the innovative methods that foster synergy, explains why corporate M&A activity so often fails to add value, and delves deep into the complex dimensions of post-transaction integration. For any organization that wants to apply the strategies and techniques described in Semi-Organic Growth, the book's companion website includes videos that add key insights.