Did you know that Google spent just $50 million to buy Android?
Turns out, though, it did not. We've already told you the story about how Android’s co-founder Andy Rubin started working on an operating system for digital cameras, but later on changed the project to target mobile phones, and that’s how Android was born. A year or so after the start of the project, Rubin, ran out of money, and started looking for funds at big companies like Samsung and Google.
After being laughed out of court at his first visit in Korea by Samsung top executives, he had scheduled a meeting with Google’s Larry Page. Over at Mountain View, Rubin started with a vigorous pitch, showing Page slides to illustrate how the 700-million-unit phone market is more than triple the size of the traditional computer market, and how that gap is only growing.
It did not take long to convince Page. Instead of getting funding for Android, though, Rubin was met with a surprising proposition - Google wanted to buy Android right away. The interesting part, however, is the price both parties agreed on: merely $50 million (plus incentives).
Google wanted to buy Android right awayAt the time, this bought Google the talented, but still very small Android team. Rubin co-founded the project with 7 other engineers, and by the summer of 2005, they were all under Google’s inviting wing. Best of all, they were not limited in their spending budget. Almost immediately after the purchase, Google shelled out over $10 million to back up the Android effort with patents.
Android co-founder Andy Rubin (on the left) and Google's Larry Page
4. sgodsell (Posts: 1289; Member since: 16 Mar 2013)
I wonder if Google was going to say sell it. How much do you think Google could get for Android today?
So many companies use Android, like all the phone OEMS, Amazon, even Microsoft is using a form of it.
20. sipha (Posts: 292; Member since: 12 May 2012)
Samsung would willing pay $20 billion no doubt.
24. express77 (unregistered)
Whatsapp sold for 19 billion. Android is more than 100 billion probably. But it is open source and free.
27. sipha (Posts: 292; Member since: 12 May 2012)
19 billion for whatsapp is just extraordinary stupidity by facebook.. You cant realy apply that methology in realy life!!
22. Finalflash (Posts: 1799; Member since: 23 Jul 2013)
It is open source, they can't sell it at all. Selling it would open them up to 20 different lawsuits from 30 different trolls, the largest of which would include Apple and MS.
25. express77 (unregistered)
" Selling it would open them up to 20 different lawsuits from '30 different trolls'., the largest of which would include Apple and MS."
LOL. +1 Dude.
14. ScottSchneider (Posts: 319; Member since: 06 Dec 2011)
Oh... I thought they bought whatsapp for $19billion... Android too...!!!
6. shimshim (Posts: 18; Member since: 04 Jul 2012)
i bought my pjs for 15 dollar. did you know?
8. sgodsell (Posts: 1289; Member since: 16 Mar 2013)
Samsung didn't want Android. In 2005 the mobile market was dominated by feature phones running java (j2me). Smart phones were very expensive and didn't do much at that time. Blackberry and Pocket PCs were on the rise. From 2005 - 2008 it was still anyone's game. Apple surprised itself and everyone when it sold as many phones as it did in 2007. In 2008 is when everyone started to hear about Android. Google released Android and made it free for OEMs like Samsung and others. Samsung was also working on releasing its own OS at the time, Bada. Which didn't go very far.
9. arenanew (Posts: 202; Member since: 30 Dec 2013)
waste and poor os i ever use if some one sell in 1 $ also . every year they pay 3 billion dollar to microsoft . made by ametured people . half baked os
28. SamDroid (unregistered)
Do you even know what you're talking about?
10. aries.phills (Posts: 133; Member since: 17 May 2011)
Having an eye for the next big thing (That's investment security).
The out-right purchase of Android might end up being Larry's best business decision ever.
Even uneducated folks would agree.
11. aries.phills (Posts: 133; Member since: 17 May 2011)
Now, I wish I could purchase phonearena for $25M.
Surely, I know it's a smart investment.
12. boosook (Posts: 1029; Member since: 19 Nov 2012)
The point is that Android would never have become what it is today without google's search, services and apps. So let's not overestimate the value of the former Android company… they made the shell that google filled with its services. A good shell, indeed, but useless without the added value of gmail, gmaps and ao on.
13. PBXtech (Posts: 980; Member since: 21 Oct 2013)
Mobile competition in 2005 =/= mobile competition in 2014. The rise of the smartphones also created the rise in $ needed to purchase software for each operating system. And the more they spend, the more is expected.
19. ErenJaeger (Posts: 119; Member since: 22 Apr 2014)
Also in my perspective, it's like how artists don't spend millions on their materials but how they use it can eventually earn them millions because of their creativity and effort. I'm pretty sure android was crap in the beginning but lots of effort made them valuable. Kinda not interesting news to me.
15. jroc74 (Posts: 4936; Member since: 30 Dec 2010)
That looks like one hell of an investment....and a cheap one today.
21. mrblah (Posts: 455; Member since: 22 Jan 2013)
Look at those two gross copy cats, rich for stealing. They should get life in prison.
23. roscuthiii (Posts: 1838; Member since: 18 Jul 2010)
A much better DYK than the normal fare of, "Did you know Android phones have a power button... standard?"
26. express77 (unregistered)
Android is becoming closed and start showing limitations day by day. This is not good.