Venture-backed Internet company founders usually dream of selling out to Google one day. But few imagine it could work the other way around.
Until earlier today, that is, when WideOrbit announced that it has agreed to buy Google’s radio automation business. San Francisco-based Wide orbit provides software that broadcasters and cable operators use to manage ad revenue, and had raised around $40 million in VC funding from Mayfield Fund, Khosla Ventures, Greycroft Partners and Hearst Ventures.
Financial terms of the deal weren’t disclosed, although the online conjecture mill assumes that Google took a hit unloading the assets. The sale includes three Google brands: Google Radio Automation, Maestro and SS32 automation products. WideOrbit says the acquisition will allow the company to provide a more complete set of tools for radio broadcasters.
But still, it’s expected Google will be doing a lot more buying that selling. Today, the company also announced it will acquire On2 Technologies, a publicly traded, formerly venture-backed developer of video-compression technology for $106.5 million in stock.
Google shares have posted a nice recovery since last fall, which could signal a pickup in stock acquisitions. Its shares sunk to around $250 in November, but are currently selling for just over $450.
Still, the past year has been a stingy period for the search giant when it comes to M&A activity. The ThomsonReuters venture capital database shows that Google has not completed an acquisition of a venture-backed company in the past year.
