Major technology companies make various acquisitions to increase their earnings and activate themselves in different areas. Although these acquisitions sometimes bring unsuccessful results, they also allow companies to increase their profitability at times. Because the income news of the companies we have shared with you recently does not say otherwise.
First, let’s look at facebook’s Instagram purchase, which was recently on the agenda of many people in the Cambridge Analytica scandal, which has now had no previous popularity as a platform and has suffered significant business as a technology company, even though it has suffered losses on a user-by-user basis. Instagram, the world’s most popular photo sharing platform, was bought by Facebook for $1 billion in 2012. Although 1 billion seemed like a huge sum, it was a question of how Facebook would make money from Instagram. But advertising revenue, which was not considered in 2012, allowed Instagram to make $20 billion in 2019. With this gain, the company even surpassed Facebook’s earnings. As a result, Facebook earned $20 billion from the company it owned, giving $1 billion in 2019 alone.
Another purchase dates back to the Instagram and Facebook relationship. Google bought YouTube in 2006 for $1.65 billion. We haven’t learned what YouTube’s profits from ads are in years. However, Google made a different decision this year and shared its ad revenue from YouTube with users. In 2019, YouTube’s earnings from advertising revenue were $15 billion. What Google has gained from YouTube in recent years is a conundrum. But even 2019 revenues alone prove how much profits Google is in terms of YouTube.