Formerly known as Google, Alphabet Inc. is one of the companies out there that is known for making quite a few acquisitions from various domains and in this article we’re going to present you the best 7 acquisitions made by Alphabet Inc. in 2015. In fact, one of the reasons why Google made one of the biggest announcements in history – the creation of Alphabet Inc. – is to make people stop wondering why Google was buying robotics companies, mobile developers and so on.
Asif Islam / Shutterstock.com
In case you’re behind with the news, Google reorganized itself into Alphabet Inc., with the process ending in early October. Alphabet Inc. is a conglomerate, the parent company of Google itself. The point of the entire change was to make managing all these domains that Google was interested in a lot easier, be it robotics, wireless Internet, home automation, or any other outlandish moonshot it wants to run.
Now, when Alphabet Inc. makes an acquisition, it distributes the company to one of its many subsidiaries – be it Google, Calico, Google X, Nest and so on.
Over the years, Google has not only paid billions to get what it wants, but it also sought out cheap deals. Some of those deals have ended up being core tools for the company. You can check out the top 6 best cheap acquisitions made by Google if you wish and see which ones you’re still a fan of.
We’re going to present you the best acquisitions Alphabet Inc. has made this year, ranking them their potential to bring Google revenue, how much they’ll be able to change Google’s tools and the price Alphabet Inc. could have paid for them given their size.
7. Tilt Brush
Score: 3
Google Cardboard is a pretty cute idea that is the result of the 20% innovation time off that employees have. When it was introduced back in 2014 at the company’s I/O event, there were plenty of raised eyebrows with people wondering why the heck Google was gifting them with some cardboard they had to put together on their own as if it were Ikea.
Since then, however, it’s become pretty clear that Google is not yet done betting on this project that turns your smartphone into a VR set. The (ultra) low-cost virtual reality headset started growing more and more and apps created for it.
That being said, it makes perfect sense for Alphabet Inc. to buy Skillman & Hackett, the studio behind Tilt Brush, a beloved art app. What you can do with it is paint in a 3D space. That’s a pretty exciting prospect and it opens the door to even more possibilities for Cardboard.
6. Pixate
Score – 9
When Google introduced Material Design, it sought to make things easier for app developers by offering them a design language that used the card theme that was already popular through Google Now.
Pixate creates software that helps developers build mobile prototypes for both Android and iOS. The team behind Pixate explained that while it has been great to get guided through the years by various clients, they want more. “Our small team at Pixate has some really big ideas, and with the help of Google we’ll be able to bring those ideas to the design community at scale,” said CEO Paul Colton.
This is obviously a great news for the fellows over at Pixate since their horizons broaden considerably with such a move, but it’s also a good thing for Google since it can build up Material Design to new levels thanks to the fresh new eyes on their team, especially since they come with such extensive experience.
Bloomua / Shutterstock.com
5. Launchpad Toys
Total score – 10
Another acquisition Google made this year is Launchpad Toys, an app developer that took storytelling a step further. In fact, the company is known for its TeleStory app which helps kids create their own TV shows to share online.
The purchase put gasoline on the fire burning behind the idea that Google was looking into creating a YouTube for children. In fact, many see this as the company’s way of divulging said plans. Even if this is indeed why Google went through with the acquisition, it’s probably going to be a long time before we see anything concrete when it comes to these plans.
According to the official announcement, Launchpad Toys was joining Google to create “even more amazing creativity tools for kids.” Immediately after the deal was announced, the app was made free for everyone to use.
4. Softcard
Total score – 11
Softcard was a joint venture between giant telcos AT&T, T-Mobile, and Verizon. The mobile payments platform was used to allow people to pay for items at stores and various restaurants with their smartphones after storing their credit or debit card information in the app. This may sound quite familiar to you if you’ve ever used or at least researched Google Wallet – it’s the same principle.
The acquisition raised quite a few eyebrows across the world as people wondered what the company was going to do with Softcard since it has its own similar service, but in the end it turned out to be one of the best acquisitions made by Alphabet Inc. in 2015. While neither of the companies went into too many details, it is suspected that patents owned by Verizon, AT&T, and T-Mobile for Softcard were at the center of the deal. While Google is not known for using such patents to sue others, it has been known to use them to protect itself from other lawsuits, including those fired up by Apple.
There’s also the fact that the three telcos have blocked Google Wallet from the devices they sold in order to protect their own payment service. Through this deal, Google opens its own door towards enabling more people to use Wallet.
3. Digisfera
Total score – 11
One of the biggest tools Google has at its disposal, and one of the most used ones as well, is Google Maps. The service has evolved a lot over the years, but one key part is Street View, the panoramic images that help you get a better view of the locations you’re hoping to visit, as well as to travel the world from the safety of your couch.
In October, Google announced that it had purchased Digisfera, a European startup that specializes in creating panoramic photos and making them look great while they’re at it.
There are no indications just yet about what Alphabet Inc. will do with this new technology and what Digisfera’s team will do at the tech giant, but it’s pretty easy to figure out that it’s probably going to be great if it means Street View will get even more polished.
2. Red Hot Labs
Total score – 11
A pretty cool acquisition Google made to boost Android is Toro, a Facebook marketing startup that used to go by the name of Red Hot Labs. The company created tools to help app developers create various marketing and promo plans for their app, all via Facebook, the world’s most popular social network.
This is a mutually beneficial acquisition as Google gains access to Toro’s various tools to help out with Android. On the other side, Toro can access more resources they can use to make their tools even better. Their focus, however, is not on Facebook alone anymore as its horizons broadened considerably. After all, with money come great possibilities and this is exactly what Toro’s team is doing right now.
Neither of the companies provided any information regarding the acquisition price, but Alphabet Inc. is known to pay whatever is needed to get what it wants. As a side note, Amitt Mahajan and Joel Poloney are no strangers to big acquisitions. In fact, they’re both founders of MyMiniLife, a company that had a key role in creating possibly one of the biggest games in recent history – FarmVille, which was later bought by Zynga.
1. Timeful
Total score – 13
Another acquisition Google made earlier this year is Timeful, a pretty cool mobile app that sought to make you as efficient as possible. The tool was created to help you be more organized both at work and at home, acting as a to-do list and a calendar at the same time.
Basically, it used some witty algorithms to suggest when it’s the best time schedule things you need to do or your habits. It asked you a lot of questions like what was your most productive time of the day and so on. If you answered “evening” for instance, it would then help organize most of your work-related tasks at that time of the day.
That being said, it’s pretty obvious what Google can use this app for and how the team behind Timeful can help the company – Google Calendar badly needs to be more efficient, it needs a makeover. Even Google was excited about the purchase, expressing this quite clearly in a blog post.
“You can tell Timeful you want to exercise three times a week or that you need to call the bank by next Tuesday, and their system will make sure you get it done based on an understanding of both your schedule and your priorities. We’re excited about all the ways Timeful’s technology can be applied across products like Inbox, Calendar and beyond, so we can do more of the work for you and let you focus on being creative, having fun and spending time with the people you care about,” said Alex Gawley, Director of Product Management.
It’s going to be interesting to see what new features will land in Gmail, Inbox, as well as Calendar and Docs now that the two companies have reached a deal. This is one of the best 7 acquisitions made by Alphabet Inc.
