
Google closed 40 Acquistions this year, 37 of which under $17M on average - rexreed
http://mediamemo.allthingsd.com/20101029/google-2010-ma-bill-1-6-billion-and-counting/
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zach
"During the nine months ended September 30, 2010, we also completed 37 other
acquisitions for a total cash consideration of approximately $626 million.
These acquisitions were not material individually or in aggregate."

Mind-boggling. Well over half a billion dollars in _non-material_
acquisitions! Only Google.

Most here could easily identify the company from that single 10-Q line alone.

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waxman
The massive cash reserves of Google, Apple, and Microsoft are good news for
startups.

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marclove
Good news for some startups. Not any that are looking for investors. At that
average acquisition price, most investors would be disappointed.

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waxman
Not really. For VC's perhaps that is the case, but for angels: $1 MM raised at
a $3 MM pre, 2.5 years of work, and a (let's say) $12 MM median sale price? I
think everyone is decently happy.

This model fits with the ever-shrinking capital requirements to launch a tech
company. Conversely, portfolio strategies that rely on huge exits (and huge
investments) are increasingly threatened.

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marclove
$1M at a $3M pre with a $12M acquisition means I'm getting a 3X return on my
investment. Now that's certainly better than losing it altogether, but I think
almost all angels would admit they'd be pretty disappointed in that outcome.

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skmurphy
When Cisco started to do this many acquisitions their competitors begin to bid
against them, increasing the price and lowering Cisco's ability to buy
products and talent below market. That does not seem to be happening yet.

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btmorex
From what I'm hearing, Google isn't getting talent at below market prices.
What's not immediately clear in the acquisition price is the ridiculous
retention bonuses Google's paying to keep these people on board. In fact, I
think they're paying through the roof for talent already... no need to for
competitors to bid up the price.

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skmurphy
Competitors can bid, not with the intent of winning, but with the intent of
driving up Google's price. This certainly happened to Cisco. The retention
bonuses are a way of making a side payment to the entrepreneurs that bypasses
the investors. Competitors could also offer retention bonuses.

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dennisgorelik
How can you bid without risk that you will have to pay?

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skmurphy
You can't, but there is a value in the underlying team and product: winning
and overpaying from time to time still resets the market when a competitor is
making many acquisitions. It also gives you more access to the deal flow,
because now you are seen as an active bidder, which in turn offers market
intelligence from being able to interact with all of these early technology
firms.

