Google Subsidiaries: The List Of Companies Owned By Google [Alphabet]

Business / By / May 24, 2022

Google’s business model (now Alphabet), started as a search engine to navigate the web, and over the years it acquired other companies like YouTube and Android and it placed other bets on what the company defines as “moonshots.” Among the other bets, there are companies like Verily, Nest, Access, and Waymo.

What makes up Google’s Empire?

how-does-google-make-money
Google (now Alphabet) primarily makes money through advertising. The Google search engine, while free, is monetized with paid advertising. In 2021 Google’s advertising generated over $209 billion (beyond Google Search, this comprises YouTube Ads and the Network Members Sites) compared to $257 billion in net sales. Advertising represented over 81% of net sales, followed by Google Cloud ($19 billion) and Google’s other revenue streams (Google Play, Pixel phones, and YouTube Premium).
google-advertising-business
Google generated over $116 billion from advertising revenues in 2018, which represented 85% of its total revenues. Of those revenues over 70% came from traffic via Google main properties (Google search engine, YouTube, Gmail, and others). Google’s main properties are monetized primary via a cost-per-click mechanism. Network members sites are primarily monetized on a cost-per-impression basis. Google also spent over $26 billion in 2018 to sustain its traffic on both its properties and as a revenue-share mechanism with its network members (AdSense and AdMob).
how-does-youtube-make-money
YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it generated more than $15B in revenues in 2019. YouTube also makes money with its paid memberships and premium content.
google-bets
Under the hood of Google’s 161 billion in revenues (2019), it hides an accounting item called “other bets.” That accounting item might hide the next big thing in technology and business. Yet, as Alphabet shows its “other bets” on its financials, we can try to understand where Google’s hidden gem is and where the future of technology and business might be heading toward.
moonshot-thinking
Moonshot thinking is an approach to innovation, and it can be applied to business or any other discipline where you target at least 10X goals. That shifts the mindset, and it empowers a team of people to look for unconventional solutions, thus starting from first principles, by leveraging on fast-paced experimentation.

Read Next: Google Business Model, How Does Google Make Money, Google Other Bets, Moonshot Thinking, YouTube Business Model.

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