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Google: buying Android was "best deal ever"

updated 03:45 pm EDT, Wed October 27, 2010

Google admits Android was tentative but rewarding

Google's decision to buy Android in 2005 was its "best deal ever," corporate development VP David Lawee remarked at the Stanford Accel Symposium today. The executive admitted that he didn't see the launch panning out but pointed to Android's success as a platform as proof. It now accounts for much of the $1 billion in mobile ad revenue at Google and at least temporarily passed iPhone share despite shipping later.

Lawee recalled seeing the company's Android VP Andy Rubin and hoping that he "does something," but it was evident to him that it was working when Rubin stayed. Acquisitions by Google still have to prove that they can work together and contribute to the company, and most successful teams have seen few if any exists.

"It's obvious when the deal doesn't work out, because the people leave," the VP said.

Rubin's team took roughly three years to get a shipping product with the T-Mobile G1's launch in October 2008, but Android has received relatively broad support that includes most major phone manufacturers, including HTC, Motorola and Samsung. VentureBeat noted that most of the ad revenue currently comes from AdMob, which also services BlackBerry devices, iPhone and other platforms besides Android, but Google is thought to have spent less than $50 million on acquiring Android itself. SEC rules usually allow small acquisitions to go through without requiring a disclosure of the terms.

by MacNN Staff



  1. kerryb

    Joined: Dec 1969


    Soiled trousers in Redmond

    I almost feel bad for Microsoft these days, they will NEVER make up for the ground they lost "innovating" the Windows mobile platform into extinction. Who would have guessed 10 years ago that Microsoft would become a niche player (although a very large one) in the tech world. They are loosing the consumer desktop market, browser dominance, mobile devices and internet services. Cling on to those corporate clients Ballmer they may soon be all you got left.

  1. SockRolid

    Joined: Dec 1969


    it's all about ads

    AdDroid (no typo) fans think AdDroid is all about "freedom" and "openness" and other kumbaya. Wrong. It's about eyeballs on AdMob ads.

    Google should make hay while the sun still shines. That Oracle lawsuit is looming like nuclear winter, and Google's only response to it is crossing their corporate fingers and hoping the suit will be thrown out of court.

  1. facebook_Thomas

    Via Facebook

    Joined: Oct 2010


    It's Interesting to see Google gloat like is

    The thing is that Google only makes money on ads. It doesn't matter what platform those ads are on. Even google ads on the iphone make Google money. So if Android never existed then that $1 billion would have just come from other smart phones. Of course it would be skewed heavily on the iPhone without android but still the same money. iAds would not exist if not for Android so Google may have possible made more money if they did not launch Android? It's hard to say???

    So stating android was the best buy ever for Google doesn't really mean much. Yes its hot. Yes it sells phones. But did it contribute to ad revenue for Googlee that would not have existed without android? I think not.

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