Google buying small firms

"Google has become increasingly comfortable with the process of acquiring and integrating large merger-and-acquisitions targets, but intends to focus more on targeted buying of smaller firms," Google CEO Eric Schmidt said during a briefing with reporters ahead of the company's annual shareholders meeting.

  • Google finds additional opportunities to plug gaps in its offerings and beef up its technology selection
  • The integration of smaller firms is easier
  • Targeted buying
  • Diversity

Google's acquisition strategy is important not only because of the direct impacts, but also because it has a significant ripple effect, with other players in the online content, search and advertising space often forced to react when it makes a move.

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