Google buys Android (mobile software)
Companies in Relationship
Initial Announcement Date:
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.
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.
May 2014 -- Android powers over one billion smartphones and tablets around the world.
October 2010 -- David Lawee, Google Vice President of M&A, remarks at the Stanford Accel Symposium that the Android acquisition was Google's "best deal ever." Lawee notes that initially he had skepticism about the deal and recalls saying "I hope this guy does something" after seeing founder Andy Rubin around Google for several years. However, having Rubin around for years after the acquisition did inspire some confidence, as Lawee added that when a deal isn't working "the people leave."
November 2007 -- Android emerges from being a stealth project as Google leads the unveiling of the Open Handset Alliance (OHA), and announces Android as an open source mobile operating system for smartphone devices.
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