In 2003, Applied Semantics, a California-based software producer for online advertising, domain name and enterprise information management markets, was acquired by Google for $102 million. Its technology helped develop a fundamental algorithm for Google, helping to shape what is now known as Google AdSense, the program which enables Google to place targeted and relevant ads all over the internet.
AdSense now accounts for over one quarter of Google’s billion-dollar revenue. In the last fiscal quarter of 2012, Adsense raked in $3.44 billion, 27% of Google’s total revenue. So looking back, the acquisition of Applied Semantics was a pretty good return on investment.
Applied Semantics highlights how sometimes the true worth of a technology or software application isn’t always apparent. It takes the right partner, the right timing and the right acquisition to help make it a success. Smart buyers know how to leverage such technology and, if they can get in early, how to snag themselves a deal.
As those in the U.S. relish in the Black Friday sales, we thought it might be fun to highlight some of the biggest tech M&A deals ever made. Our list of “Huge Discounts in Tech Deal History” demonstrate that it’s not only people who love a good bargain, but companies as well.