Google to ramp up its spending spreeMay 6, 2010: 12:40 PM ET
According to statements in its 10-Q filing, Google plans to accelerate its acquisition rate for the rest of the 2010.
Google has already started the year on a strong buying run, purchasing or announcing the intention to purchase nine companies for a total of $145 million. That's just the first three months and doesn't include bigger purchases of Admob ($750 million, still waiting on regulatory approval) and On2 ($123 million).
According to the 10-Q filing with the Securities & Exchange Commission, Google (GOOG) intends to pick up that pace.
Gigaom grabs the following quote from the 10-Q:
We expect to increase the number of acquisitions we make in the remainder of 2010 compared to 2009. These acquisitions generally enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product offerings.
Why all of the spending? Google is battling Apple (AAPL) for mobile and Facebook in social and sees acquisitions as incredibly important to this battle. To compete, Google has to expand its breadth of its engineering much more than it feels it can do organically.
Apple and Google specifically have been squabbling over hot startups, Apple losing Admob to Google but then snapping up Lala before Google could finish a deal.
With the spending and competition between Valley behemoths at a high point, it is a good time to be a startup in the valley.