Google buys Applied Semantics (semantic text processing)

Companies in Relationship

Applied Semantics, Google

Deal Facts

Initial Announcement Date: 4/03

Consideration: $102.4M, consisting of $41.5M in cash and stock and stock options valued at $60.9M; $84.2M of the transaction was allocated to goodwill (Source: Google S-1)

Google buys Applied Semantics, a developer of semantic text processing and online advertising technology.

Strategic Implications

Applied Semantics 45-person large organization is one of the best acquisitions in Google's history. The Applied Semantics team was instrumental in building AdSense, which became a cornerstone of Google's paid advertising platform. In Q1 2011, Google reports it earned $2.34 billion ($9.36 billion annualized), or 28% of total revenue, through AdSense. AdSense positions text ads all over the Internet. This Google technology scans a page for keywords used in displaying relevant ads.


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