Earlier in the day the good folks at the Silicon Alley Insider brought up some great points about Google and their purchase of Double Click. Until now, that Double Click deal was the biggest deal that Google has done in regards to absorbing staff of an acquired company.
As we reported (probably multiple times) earlier in the day, Google is set to absorb a company with 19,000 employees, a company that’s been around since the early 1900s. Double Click on the other hands was founded in 1996 and just 12 years later, after a previous change of hands, Google purchased it in 2008. At that time Double Click had technology Google wanted as part of it’s search products and the acquisition included 1600 employees.
More after the break
SAI points out, through anonymous former Double Click sources, that then Google CEO Eric Schmidt demanded that Double Click get rid of 40% of it’s work force. Google was able to shed 60% of the Double Click staff by spinning out 13%, firing 13% and putting another 13% on contract. SAI asks a great question, are there any businesses Google can spin out? Perhaps but that would impede the overall picture of the acquisiton.
The next question, are there units at Google already working on the same thing? Can they combine efforts or consolidate departments? Nope not in this case. Perhaps they could consolidate in marketing but anyone who has been studying Google for quite sometime would know that Larry Page and Sergey Brin have some old school ideals about marketing in the first place. In a nutshell they almost still guide themselves on the fact that if they have a good product, there doesn’t need to be hocus pocus marketing. I mean you can tell that by the quotes page from other OEM CEO’s posted to Google’s press section today, can’t you?
Motorola Mobility uses powerhouse PR Firm Weber Shadwick in their Seattle office to handle all things Motorola Mobility. Google, as large as they are, uses boutique firm Cut-Line. An account the size of Motorola most likely mandates a monthly budget of $100,000 or more with Weber Shadwick. Maybe Motorola can cut some fat here and on the creative/advertising side? But should they? Absolutely not.
The point here is that comparing what happened with Double Click to what will happen to Motorola is premature and irresponsible. It’s not like there are hundreds of cell phone developing engineers in the confines of the Google Plex already. Sure there is the Danger team, which was recently brought back together by Andy Rubin at Google.
Also make sure you realize that Motorola Mobility was not in the same situation as T-Mobile. Prior to the T-Mobile merger announcement Deutsche Telekomm had all but said get the heck out of our house. Although Motorola is currently seeing a tad under 3% of the market share this acquisition wasn’t out of desperation.
Sure Google is going to consolidate wherever it can and try and save money but no one, not even us, can speculate as to where that would leave the current Motorola employees.