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The Empire Grows: Google's Q3 Filing Reveals Aquisition Prices

habermann-greg
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According to Google's Q3 filing with the SEC, the search giant bought social application maker Slide for $179 milion in cash. Previous estimates had the price as high as $228 million while the company, started in 2006 by Paypal co-founder Max Levchin, was valuated in 2008 for $550 million. This marks another step by Google which could indicate a more aggressive move into the social realm in the days ahead. Google Me anyone?

What's more interesting here is at this filing reveals the search engine's total acquisition costs to date. Through the end of September, Google shows that it has spent $626 million for 37 acquisitions. Those don't include the purchasing of Slide ($179 million), On2 ($123 million) or AdMob ($681 million) which totals a hefty sum $983 million.

For those who don't want to dig through the SEC filing but want the full breakdown, here are the relevant bits for you:

In August 2010, we completed the acquisition of Slide, Inc. (Slide), a privately-held social technology company for a cash consideration of $179 million.

In May 2010, we completed the acquisition of AdMob, Inc. (AdMob), a privately-held mobile display ads technology provider. The purchase price was $681 million, consisting of the issuance of approximately 1.2 million shares of our Class A common stock and assumed vested options valued at $655 million, and cash of $26 million. The issued shares were valued based on the closing price of our Class A common stock on May 27, 2010. The fair values of stock options assumed were estimated using Black-Scholes-Merton option-pricing model.

In February 2010, we completed the acquisition of On2 Technologies, Inc. (On2), a publicly-held company, and developer of video compression technology. The purchase price was $123 million, consisting of the issuance of approximately 174,000 shares of our Class A common stock valued at $95 million, based on the closing price of our Class A common stock on February 19, 2010, and cash of $28 million.

To offset the dilutive impact of issuing shares in connection with the AdMob and On2 acquisitions, we also repurchased and subsequently retired 1.6 million shares of our Class A common stock for $801 million pursuant to Rule 10b5-1 trading plans.

During the nine months ended September 30, 2010, we also completed 37 other acquisitions for a total cash consideration of approximately $626 million.

With numbers like that and Google's ever growing appetite it will definitely be interesting to see what happens in Q4.


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