5 of the Best Tech Acquisitions Ever
In honor of Evan Niu's worst tech acquisitions article, here's my top 5 tech acquisitions...
5) Google buying YouTube for $1.65 billion in 2006. Youtube should generate about $3.5 billion in revenue this year, about double 2012. Online video portals are a highly contested area right now and Google is sitting pretty as Youtube is easily the most ubiquitous and heavily trafficked of the lot.
4) eBay buying Paypal for $1.5 billion in 2002. Paypal today is about a $6 billion revenue outfit and continues to grow at double-digit rates, proppling up the lagging auction website. It is one of the biggest payment processors in the world.
3) EMC buying VMware in 2003 for $635mm in 2004. A shrewd purchase just before virtualization started to take off as a networking strategy. Today, EMC's stake in VMware is worth a cool $32 billion, a nifty 50x return!
2) Apple's $432 million purchase of NeXT in 1996. With this, Apple acquired the technical underpinnings for both their desktop (Mac OS X) and mobile (iOS) operating systems - programming class names still start with "ns"! They also bought some amazing engineering talent in Avie Tevanian and Scott Forstall, the "OGs" of Mac OS X and iOS, respectively. And, of course, the move brought Steve Jobs back to Apple. A transformative acquisition that is a very close 2nd to Microsoft's move.
1) Microsoft buying 86-DOS from Seattle Computer in 1981 for $50,000! The company licensed MS-DOS as a product for over a decade and then wrote a graphical layer over it. You might of heard of it, it's called Windows? The core MS-DOS kernal is still a part of Windows 7. One of the greatest tech companies ever owes its entire existence to this singular, shrewd acquisition.