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Visualizing 15 Years Of Acquisitions By Apple, Google, Yahoo, Amazon, And Facebook

Hi Folks,

Its been a while! I wanted to share a very interesting article from Josh Constine and Tech Crunch about 15 years of acquisitions by leading tech giants. Check this out. Pretty interesting stuff.

-DF

Visualizing 15 Years Of Acquisitions By Apple, Google, Yahoo, Amazon, And Facebook

You grow old, you slow down, and you die. That is, unless you can inject some fresh blood. After watching the last generation of tech giants wither or stagnate, today’s juggernauts are relying on acquisitions to keep them young and relevant. Check out the interactive infographic below to compare the size, frequency, and focus of the last 15 years of acquisitions by Apple, Amazon, Google, Yahoo, and Facebook.

Business insurance provider Simply Business created this infographic, which is only available here on TechCrunch. Each dot’s size represents the price paid for that startup if it was disclosed. Scroll over them for a link to learn more about the deal. The plus and minus buttons in the top right let you zoom in on specific time periods. Select categories at the top to filter for certain types of acquisitions. The Frequency toggle reveals phases when companies did heavy buying. And you can click any of the tech giants’ logos to view a complete list of their full-scale acquisitions (small acqui-hires excluded). Sorry to our mobile readers, but it’s much easier (possible) to navigate this on the web.

Trends crystallized by the Simply Business infographic include:

The drought of acquisitions by Yahoo in 2011 and 2012 before Marissa Mayer began her buying spree after being named CEO.
Apple has kept the price of its acquisitions low despite its huge cash reserves, as it prefers to buy for technology rather than market share.
Facebook accelerated its talent-focused acquisitions following its IPO to combat brain-drain.
While Steve Jobs saw acquisitions as a “failure to innovate,” Tim Cook has been proactive about buying companies to bring new intellectual property to Apple.
There was a recession in acquisitions in the “Rest In Peace: Good Times” era from 2008 to 2009.
Social, mobile, and hardware acquisitions have come into favor as search, media, and advertising buys have waned in the past few years

And the biggest acquisitions (with disclosed prices) by the giants were:

  • Apple – Anobit ($390 million), AuthenTec ($356 million)
  • Amazon – Zappos ($900 million), Kiva Systems ($775 million)
  • Google – Motorola Mobility ($12.5 billion), Nest ($3.2 billion), DoubleClick ($3.1 billion), YouTube ($1.65 billion)
  • Yahoo – Broadcast.com ($5 billion), Overture ($1.83 billion), Tumblr ($1.1 billion)
  • Facebook – WhatsApp ($19 billion), Instagram ($1 billion, closed at $715 million)

YOU CAN READ THE WHOLE ARTICLE HERE

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Written by David Frederick

February 26, 2014 at 12:01 PM

Series A Crunch And The Lean Funding Model

Duncan Davidson of Bullpen Capital recently presented a very interesting concept at the December 2011 TechCrunch conference in Tokyo. At the conference he discussed how the lean startup model had given rise to a lean finance model for venture capital.

The concept: keep funding lean for as long as possible, until the startup has validated its model and is beginning to scale. Usually it takes around six months of metrics to be in position to raise a big round. That “shovel-in” round is where the lean model catches up to the traditional venture model, as shown in the chart.

 

 

 

 

 

 

Image: BullPen capital

By using this process, the founders have preserved more ownership as well as their options. Most startups are not suited to become billion-dollar babies, and exit via M&A, often quickly (a “quick flip”). Lean funding makes the quick flip attractive both to the founders, who often each pocket at least $10M, and the funders, who make larger multiples on their invested capital by putting less in. If this happens quickly, the IRR can be quite attractive to the LPs who invest into the lean venture funds.  They have learned to be wary of big venture, where their capital is tied up for ten or more years.

To learn more, read the TechCrunch article and view the interview with Duncan, click here!

-DF

Written by David Frederick

December 6, 2011 at 5:57 PM

SoLoMo And What It Means For You And Your Business

Oh SoLoMo…..

What’s SoLoMo you say? SoLoMo (social, location, and mobile) is a trend larger than any single app or company, and it will encompass every industry on the planet. The future of mobile location will see the integration of location-enabled features and insights into every product you touch and every process you engage in during the course of your life, providing great efficiencies and incredibly valuable insights.

Every industry is, and will increasingly be affected by mobile devices and location-sensing technology. What we’re seeing today in the arenas of local commerce, deals, and productivity is only the beginning. With Internet and location-enabled phones in the hands of billions all around the world, the future of mobile location is rapidly becoming our future as an advanced civilization. As many of you know however, I am very concerned about the security responsibility and privacy issues around SoLoMo. Like all technology, there are always ethics issues involved in its development, deployment, and  utilization. But that’s a future blog posting!

Regardless, Fast Company has a really interesting article on SoLoMo and Mobile. You can check it out!

-DF

Written by David Frederick

December 6, 2011 at 5:26 PM

The Future of Mobile is Content

Forrester recently came out with a new report called CMO: The Future of Mobile is Content. While this is a no brainer to many of us in the content and technology space, and certainly didn’t need a report to articulate this seemingly obvious trend, it does shed some interesting light on this topic. So lets take a quick look.

In the report, Forrester discusses how consumers will adopt and use convenient services and products. On mobile devices, this means services that offer immediacy and simplicity through a highly contextual experience. This is nothing new and was one of the key drivers for web 2.0 solutions. It’s now and not surprisingly moved to mobile devices.  Context — the sum total of what is known about an individual along with what he or she is currently experiencing — is a moving target that will pull consumer expectations of convenience with it.

This is an interesting paradigm in that it creates a two-fold challenge – privacy concerns for the consumer/user and a voluminous amount data that a marketing executive will have to define, capture, parse, track, analyze/understand and act/respond to -KPI’s, etc. If they want to be successful. Most executives have a very difficult time understanding and defining their data, determining what data to look at and what to do with it, so marketing leaders will need to clearly define and deliver highly contextual experiences to build mobile relationships with customers that drive engagement and ultimately sales or the desired response. Not all marketing executives need to move at the same pace to embrace new contextual information, but marketing executives must orchestrate, define and enable collaboration across all the members of their organization to build effective contextual mobile offerings.

The report covers a variety of topics and demonstrates that:

  • Mobile Phones Will Be Your Customers’ Preeminent Digital Engagement Channel
  • Contextual Experiences Will Define Mobile Success
  • Technology Innovations Will Drive Context Capability Forward
  • Reaching The Right Level Of Context Will Take Time And Strategic Alignment

The report also provides the following key advice and conclusion:

  • Aspire To Mobile As The Primary Digital Medium for your business.

What does this mean to the consumer and content provider?

  • The Cost Of Convenience Is Privacy
  • Supplemental Material will be needed
  • A voluminous amount of data can and will be captured. How do you define what you need and how do you use the information to create the desired response from consumers.

As I said, if you have been alive in the last 10 years and were involved in the content space, you would know much of this. Still, the report provides a strong case for the dominance and explosive growth mobile devices play in our everyday life. In the not to distant future mobile devices will control and enable a large part of our everyday life – shopping, banking, navigation, entertainment, payment and payment collection, communication, control of remote devices….wait….they already do that today! So if they already do that, imagine the further intrusion or shall I say integration, these ubiquitous devices will have on our everyday experience.That means two things. For the consumer – empowerment and convenience. For the marketer a new and highly intense real-time engagement with the consumer to drive revenue, brand support, engagement and more.

Mobile devices, platforms, and content will be the dominant tool for humanity in the coming years as well as one of the most powerful revenue generating models. From medicine to finance. Finance to entertainment. Supply chain to shopping. From Shopping to, well you get the point. Check out Forrester’s new Report. It has some interesting data points that truly validate this explosive trend.

-DF

Written by David Frederick

July 30, 2011 at 8:51 AM

S Curves Everywhere

If you have ever worked with predictive models and trend mapping you are no doubt familiar with the S curve. The ubiquitous S-curve (also known as the sigmoid function) has long been recognized by economists, technologists, and scientists as a strong tool for understanding patterns. Now professor Adrian Bejan at Duke University, with collaborator Sylvie Lorente from the University Toulouse, has developed an exiting new theory that explains the reason for the prevalence of this particular pattern throughout nature and the man-made world.

Their research shows that this phenomenon can be predicted entirely by recognizing in it a flow. The flow is not by diffusion alone, rather it is a combination of tree-shaped “invasion” by convection, followed by “consolidation” by diffusion perpendicular to the invasive lines. The S curve is not unique: its scales depend on the relative magnitude of the speed of the invading lines and the diffusivity perpendicular to the lines. Tree-shaped invasion covers the territory with diffusion much faster than line-shaped invasion. The predicted S-curve flow architecture unites the designs of spreading flows and collecting flows (e.g., mining, fossil fuel extraction, Hubbert peak) in all the realms of nature: animate, inanimate, and human-made.

Economic trends, population growth, the spread of cancer, or the adoption of new technology seem to follow certain patterns, says Bejan. A new technology, for example, begins with slow acceptance, followed by explosive growth, only to level off before “hitting the wall. Rebecca Henderson – one of my favorite MIT Sloan Professors who is now at Harvard Business School had some very interesting theories and practical models for working with S-Curves when developing a successful product and technology strategy. You should also check out her work as well.

Bejan’s theory, known as the constructal law, uses a large river basin as a visual description of flow systems, growing fast and far, with smaller branches growing laterally from the main channels. It is based on the principle that designs of flow systems develop over time by facilitating flow access — reducing and distributing friction or other forms of resistance.

  • A new technology, for example, after a slow initial acceptance can be imagined moving fast through established, though narrow, channels into the marketplace. This is the steep upslope of the “S.”
  • As this technology matures, and its penetration slows, any growth, or flow, moves outward from the initial penetration channels in a shorter and slower manner.

If your involved in predictive models, product development, technology development or analysis this is a very interesting study and I recommend you check it out. You can get the study below:

-DF

Ref.: A. Bejan and S. Lorente, The constructal law origin of the logistics S curve, Journal of Applied Physics, 110, 024901 (2011); [DOI:10.1063/1.3606555]

Written by David Frederick

July 21, 2011 at 9:49 AM

The Six Steps In Cost/Benefit Analysis

I am always amazed at the confusion, misunderstanding and ineffectiveness of middle and senior management when it comes to conducting meaningful and actionable cost/benefit analysis.

Either the effort is to high level or mired in too much data which ultimately produces inaccurate and non-actionable outcomes.

We all know it’s easy to make an investment decision when the benefits obviously outweigh the costs, but few people understand what really should go into the analysis. So here are six steps to help you produce a meaningful and actionable CBA.

  1. Understand the cost of status quo. You need this to measure the relative merit of an investment against the “do nothing” option. Sometimes doing nothing is the right decision.
  2. Identify costs. Consider up-front costs as well as any in future years. Almost any initiative will have up front cost. Most people get hammered when they fail to consider the upfront costs or hidden costs.
  3. Identify benefits. Ascertain what additional revenue or return will come in from the investment. This is dicey because you need to define an ROI. The challenge is how to define the ROI. Remember, ROI to one constituency may be efficiency. To another it may be revenue. To another it may be market share, etc. ROI is subjective and you will need to consider all perspectives and ROI definitions to truly get a true benefit picture/metric.
  4. Determine the cost savings. What can you stop doing if you make this investment? Sometimes its a trade-off. If we do X, can we stop using Y. That’s another hidden variable that many forget about. If you stop doing Y because of X that cost savings could exponentially increase the benefits of doing the initiative.
  5. Create a timeline for expected costs and revenue. Map out when the costs and benefits will occur and how much they will be. This is critical for two reasons. One, expectations. By having a defined timeline you can align and define expectations of all interested parties. Two, understanding the timeline allows you to plan for the cost and revenue impacts to your operations thus empowering you to better manage and adjust course accordingly if things change.
  6. Evaluate non-quantifiable benefits and costs. Assess whether there are intangible benefits such as strengthening your firm’s position with distributors, or costs such as creating unnecessary complexity. This kind of goes back to point 2. It’s important to understand the benefits from all perspectives including tangible and non-tangible. Benefits or ROI are subjective understanding and accounting for them are key. Defining non-quantifiable benefits and costs i.e. emotional toll, work load, disruption to the enterprise, client or market confusion, etc. can all impact the overall benefit and cost of the initiative. Even if you don’t include these variables in the actual equation, as a responsible leader you should consider these issues in full to ensure you have a complete grasp of the impact on the project and can manage the initiative effectively and productivity to a successful outcome.

I hope you find these tips helpful but remember, when conducting a CBA be careful of data overload. While considering all the data to make an informed decision is important, you need to balance the effort so you don’t end up with paralysis by analysis. The ultimate objective is to make in informed and actionable decision based on a reasonable and responsible CBA.

-DF

Written by David Frederick

July 14, 2011 at 8:47 AM

3 Ways To Predict The Future of Technology

It’s expected that today’s CIO’s, CTO’s and even CEO’s are able to see deep into the future so they can make reliable and actionable predictions (in an ever-changing world) about coming technology needs and trends. If, like most CXO’s, you don’t have a crystal ball, try using these three tactics to better see the future:

1: Rely on more than one source. Don’t depend on one consulting firm, no matter how well-respected. Turn to a variety of internal and external experts to predict
what’s coming. This can also include industry peers, case studies, competitive analysis and more,

2: Go to more than the customary events. Widen your sources (internal and external) by going to a variety of conferences, industry education events and trade shows. Mingle with vendors, customers, venture capitalists, and academics to see a breadth of views. You should also engage with leading universities that specialize in technology to see what is being done, new technology solutions and application/usage trends. I highly recommend MIT, MIT Sloan School of Management, University of Advancing Technology,  Cal Tech, etc.

3: Look down. Rather than turning to people who have more experience than you, seek out junior people. The younger crowd often spots trends in technology long before even the best CXO knows of them. This is a model perfected from the Military. Everyone knows who has ever served in the Military that the Chief’s and Sergent’s run the show and usually have the greatest/diverse experience and solutions to both current and over the horizon tactical and strategic challenges.

For more information on this topic, I recommend you check out Robert Plant’s The CIO as Corporate Psychic.

-DF

Written by David Frederick

July 13, 2011 at 11:38 AM