Google paid $151M for Zagat in flurry of 3Q deals

Oct 27, 2011

Google spent more than $500 million to acquire another 27 companies during the third quarter, ensuring this year will be busiest shopping spree in the Internet search leader's history.

The tally emerged Wednesday in a quarterly report that included another previously undisclosed nugget: Inc. paid $151 million in cash for the Zagat Survey, a renowned restaurant review publisher that Google bought to counter the popularity of Yelp's business rating service. The price is higher than estimated in previously published reports, which pegged the deal's value between $65 million and $125 million.

Google's latest flurry of deals raised its acquisition count to 57 companies through the first nine months of the year. That already exceeds Google's previous annual record of 48 acquisitions, reached last year.

Although Google has never completed more acquisitions in its 13-year history, the company isn't guaranteed of setting a new spending record.

Through September, Google's deals had cost a total of $1.4 billion. That's below the $1.8 billion that Google spent last year and less than the $3.2 billion it spent in 2008 buying online advertising service , its biggest-ever purchase and its only acquisition that year.

Google agreed to buy cell phone maker for Motorola Mobility Inc. for $12.5 billion in August, but that deal may not be completed before the end of the year. That's because the U.S. Justice Department is investigating whether the proposed takeover would stifle competition in the increasingly important .

Most of Google's acquisitions involve small startups that are developing promising technology or employ talented engineers.

Google snapped up the Zagat Survey because it wanted a well-known brand that would allow it to feature more restaurant recommendations and reviews on its own website instead of sending Web surfers to Yelp and other rivals.

Google tried to buy Yelp in 2009, only to be rebuffed. is now among a group of competitors trying to convince U.S. regulators that Google has abused its dominance of Internet search by highlighting its own services in its results.

After Zagat, the next-largest acquisition Google completed in the third quarter was the $114 million purchase of Daily Deals, an online discount service in Europe.

Explore further: Silicon Valley shuttle drivers vote to unionize

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Google paid $125 million for Zagat: WSJ

Sep 09, 2011

Internet search and advertising giant Google paid around $125 million for restaurant review guide Zagat, The Wall Street Journal reported on Friday.

US wants more info from Google on Motorola deal

Sep 29, 2011

Google said Wednesday the US Justice Department has asked for more information about its bid for Motorola Mobility but expressed confidence the $12.5 billion deal will get the green light.

S&P says sell Google's shares after Motorola deal

Aug 16, 2011

(AP) -- Standard & Poor's is saying investors should sell Google's stock because it believes the search leader's decision to buy Motorola Mobility increases the risk to the company and its shares.

Recommended for you

Japan's NTT to buy German data centre operator

6 hours ago

Japanese telecom giant NTT Communications is looking to acquire German data centre operator e-shelter, as it seeks to cash in on growing demand in Europe, a newspaper reported Saturday.

Google hits back at rivals with futuristic HQ plan

Feb 27, 2015

Google unveiled plans Friday for a new campus headquarters integrating wildlife and sweeping waterways, aiming to make a big statement in Silicon Valley—which is already seeing ambitious projects from Apple ...

Ericsson sues Apple over patent violations

Feb 27, 2015

Swedish telecoms group Ericsson announced Friday a lawsuit against Apple claiming that the US tech giant continued to use its technology in iPhones and other wireless devices after refusing to renew a licencing ...

Stock market shrugs off net neutrality vote

Feb 27, 2015

(AP)—The stock market largely shrugged off the Federal Communications Commission's vote to impose tougher rules on broadband providers like Comcast, Verizon and AT&T to prevent them from creating paid fast lanes for the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.