Billion dollar companies have a penchant for acquiring technology the easy way, and Google’s takeover of ITA Software, a leading flight information company, for $700 million is a classic example. Amazon’s takeover of Woot, for an undisclosed amount, is something different, though ultimately along the boring lines of vertical integration, with a content distributor taking over a content provider, albeit one known for its ‘snarky commentary’.
What is definitely illuminating, is Woot CEO, Matt Rutledge’s take on the takeover, a delightful exploration into how laboriously funny a chief executive can be when telling his employees that they’ve just been bought over coffee by the Amazon. Check it out here, and don’t forget to take your seasickness pills for the rollercoaster ride.
Google’s acquisition of ITA Software is definitely more intriguing…what exactly do they intend to do with a $700 million dollar flight information company? How will they provide that information to the masses, and what their cut will be? So far, while speculation runs rife and rumours of a regulatory body taking interest start appearing, Google has not said how they intend to use ITA, except by commenting that they’d honour all of ITA’s previous commitments; most notably service agreements with Microsoft’s Bing, apart from the more obvious Kayak and Orbitz.