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Shedding Light on Some of Google’s Acquisitions in 1Q18

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Google acquiring Tenor

Google, Alphabet’s (GOOGL) largest unit, has made a number of acquisitions so far this year. One notable acquisition announced by Google in 1Q18 was that of GIF (graphics interchange format) platform Tenor in the final week of March. Google plans to integrate Tenor into Google Images, its image search product.

Tenor provides a library of animated images, and CNBC reports it had more than 300 million users last year. Tenor is involved in digital advertising, and it has created sponsored GIFs for companies such as AT&T (T), Nissan Motor (NSANY), and Dunkin’ Donuts. Therefore, Tenor could boost Google’s advertising business, which contributed more than 80% of Alphabet’s overall revenue in 4Q17.

Over 20 billion connected objects

Google is also acquiring IoT (Internet of Things) platform Xively from LogMeIn (LOGM) in a deal expected to cost it $50 million.

Xively “will complement Google Cloud’s effort to provide a fully managed IoT service that easily and securely connects, manages, and ingests data from globally dispersed devices,” said Google ‎head of product management for cloud IoT Antony Passemard. Gartner predicts that 20.4 billion connected objects will be in use by 2020, up from an estimated 6.4 billion objects in 2016, as shown in the chart above.

A boost to cloud business

The acquisition of Xively could supercharge Google’s cloud computing unit and help the company close the gap with cloud computing leaders Amazon (AMZN) and Microsoft (MSFT).

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