Facebook, Google Slow Their Startup Spending Spree
Both Web giants, which have been very active acquirers for the last few years, slowed down considerably in the third quarter of the year.
Facebook, which had spent $246 million buying companies in the first six months of 2013, spent $14 million in the next three months. Google had a similar pattern: In addition to Waze, the mapping startup it bought for $1 billion, Google bought 15 other companies for $344 million in the first half of 2013. But Google only shelled out $25 million, on five purchases, in Q3.
Two quick off-the-cuff theories to explain the slowdown, which aren’t mutually exclusive:
- Perhaps both Google and Facebook have concluded that the startup shelves have been pretty picked-over, and there’s not a lot else they need to buy.
- Bankers need breaks, too.
(Image courtesy of Shutterstock/PTstock)