Google Acquisitions Look For Crazy Ideas
Interesting article over on Bloomberg reporting that Google Inc apparently looks for ‘crazy ideas’ when sizing up potential purchases.
“We look at everything very carefully,” Salman Ullah, Google’s director of corporate development, said yesterday in a speech at a meeting of the Los Angeles Venture Association. “The really crazy ones do really well.”
It’s said that the acquisitions team meet with dozens of companies a week. They respond to every email pitching a company with phone calls having a 10 percent response rate.
“The crazy ones mean they ignore the usual restraints of investment levels required or design parameters or `Gee I need more servers than anyone ever thought was possible’,” Ullah said. “When you free yourselves from these constraints, you create crazy, cool things.”
Google wants companies that can build revenue streams from their users, instead of buying firms with a lot of users that don’t bring in much in sales, Ullah said.
“We don’t do traffic for traffic’s sake,” he said. “It has to be highly monetizable.”