Visual Finance shows Google's acquisitions
Published Date
Google’s Acquisition Strategy and the Power of Cash
Google has been acquiring companies at a rate of one per week for the past couple of years. Most of these companies are bought for under $10 million, but there have been larger, high-profile acquisitions in the nine- to eleven-digit range:
- $400 million for Admeld (online advertising)
- $151 million for Zagat (restaurant reviews)
- $12.5 billion for Motorola Mobility
Google’s Balance Sheet in Visual Finance Format
When you view Google’s financial statements using Visual Finance, with every "stack" representing $5 billion, their acquisition strategy becomes even clearer.
The lit area in this visualization shows Google’s assets on its Balance Sheet at the end of 2011:
- The largest amount is $35 billion in Short-Term Investments, plus another $10 billion in Cash and Cash Equivalents (partially hidden in the ratio view).
- The next largest assets are $10 billion in Property, Plant, and Equipment (PP&E) in the upper right.
- $7.5 billion in Goodwill—representing the excess paid over book value for acquisitions—is nearly the size of their entire PP&E value.
In other words, Google grows by buying whatever it needs—and it has the cash flow to do it. Their high profitability (26% of sales) demonstrates that their strategy is working well.
Google, Visualization, and Business Acumen
Google has become a huge part of Andromeda Simulations International’s structure, just as it has for many businesses. We respect not only their products and services but also their culture—especially their emphasis on visualizing and transmitting information.
At Income|Outcome and Visual Finance, we share that same focus. Business visualization, financial acumen, and the power of experiential learning help organizations make smarter, faster decisions—just like Google does.
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