Google buys Android (mobile software)

Companies in Relationship

Android, Google

Deal Facts

Initial Announcement Date: 8/05

Consideration: $50 million (Source: CrunchBase)

Google acquires Android, a small startup company based in Palo Alto, CA. that makes software for mobile phones. Google's acquisition of the company triggered rumors that Google was entering the mobile phone market, although it was unclear at the time how it would play in the market. The Android operating system is now the dominant platform for mobile phones.

Two key players in the creation of Android, Andy Rubin (co-founder of Danger) and Rich Miner (co-founder of Wildfire Communications, Inc.) join the Google team.

Strategic Implications

Although Google does not currently charge licensing fee for the operating system itself, the company profits from mobile ads displayed on Android phones as well as from revenues earned in the Android App store. The strategy to open source Android has driven quick adoption of the platform, which has augured well with Google's broader ad-based business model. With over 190 million Android devices activated globally as of October 2011 and $2.5 billion in mobile revenues that Google has earned in 2011, the Android platform, in conjunction with wireless advertising acquisitions such as Admob in 2009, have proved to be transformational for Google’s mobile aspirations.

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