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Google and Apple competing to buy start-ups

updated 09:45 pm EST, Thu December 10, 2009

Both companies pursued La La, AdMob

Several Silicon Valley start-ups have been eyed by both Google and Apple, according to a Wall Street Journal report (subscription required). Although Apple recently sealed the deal to acquire La La Media, Google also had been negotiating to purchase the online music store. The competition also extended to AdMob, an advertising company that Google agreed to buy for $750 million.

The recent acquisitions serve as further evidence that the companies are becoming direct competitors in many arenas, as Apple begins to eye advertising companies and Google appears to be expanding its music service.

Google and Apple are already fighting for market share in the smartphone segment. The recent Droid commercials show such rivalry, as Verizon and Motorola directly criticize the iPhone's shortcomings. Apple's recent job offerings have lead to speculation that the company is attempting to build its own navigation utility to compete with Google Maps, a free app available on Android devices.

Several analysts believe Apple was trying to acquire AdMob to protect sensitive data regarding the App Store. Google's presence in mobile advertising might allow the search giant to analyze Apple's app portal through information gathered from ad-supported content.

Google recently launched its Chrome browser on the Mac platform, although it has already competed with Safari for market share on Windows machines. A preview of the search giant's Chrome operating highlighted the company's integrated music service, providing a potential alternative to iTunes.

Both companies are expected to continue acquiring smaller tech companies, as Google holds nearly $22 billion in cash and Apple's coffers are filled with $34 billion in funds.



By Electronista Staff
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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +1

    Google will win in the buying spree...

    Apple clearly doesn't want to spend money on purchasing companies. Maybe because they have something in mind. Something really important. One day they may become their own carrier or something to that effect.

    Clearly, Google seems intent on gobbling up anything they can get their hands on. They want to be really big. They're hungry and greedy and are looking to quickly become bigger than Microsoft by undermining it in every way possible.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    Re: Google will win

    Google can't win, because there is no competition. Google and Apple are in completely different fields and, as such, most of the companies they're looking at aren't the same type of companies.

    Even the AdMob competition wasn't an actual competition. Google bought them for their advertising business. Apple was looking at them in some wasted thought of trying to keep information about the AppStore usage from others' hands.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +2

    Re: Google will win pt 2

    Apple clearly doesn't want to spend money on purchasing companies. Maybe because they have something in mind. Something really important. One day they may become their own carrier or something to that effect.

    Apple is NOT going to get into the carrier business. There is NO benefit to get into that area. The capital outlay is enormous and, after all that work, all that will end up happening is they'll be called the same names that Verizon, ATT, T-Mobile, Sprint, Rogers, et. al. are called (well, except from the fanboy crowd and the small group who actually gets good service and coverage from them).

    It could be they don't want to spend money because they actually spend their money wisely and not just rush out to start gobbling up companies for the sake of becoming bigger.

    Clearly, Google seems intent on gobbling up anything they can get their hands on. They want to be really big. They're hungry and greedy and are looking to quickly become bigger than Microsoft by undermining it in every way possible.


    Maybe you missed the memo, but Google is already REALLY BIG. And they are currently bigger than Microsoft.

    And one person's 'undermining' is another person's 'competing'.

  1. wingdo

    Senior User

    Joined: Apr 2001

    0

    I cannot believe I am saying this

    Testudo is 100% correct

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