Does Amazon Own Google In 2024? (All You Need To Know)

ByCharles Scott Last Update on

With a current market valuation of over $1 trillion, Amazon is at the forefront of the tech industry. Meanwhile, Google dominates the online advertising and search markets, valued at over $1.5 trillion. Given the vast size and influence of these two tech giants, some customers may logically wonder if Amazon also owns Google. However, the fact is that Amazon does not have any ownership stake in Google as of 2023.

Amazon‘s Revenue Sources and Growth Strategy

Amazon generates revenue primarily through its core ecommerce operations, Amazon Web Services (AWS) cloud computing, and a fast-growing advertising business. Amazon‘s strategy has focused heavily on vertical integration, owning the entire supply chain process from warehousing to last-mile delivery. Acquiring Google would not align with this approach.

In recent years, Amazon has made strategic acquisitions mainly in grocery (Whole Foods), healthcare (PillPack), and media (MGM Studios). These allow Amazon to expand into new verticals that align with its distribution capabilities.

Meanwhile, Google would offer little synergy given its reliance on search and online ads. Therefore, acquiring Google would be an unlikely and unstrategic move for Amazon.

Google‘s Core Businesses Stay Independent

Google derives the majority of its revenue from online advertising, which is interlinked with its search engine dominance. Other major revenue streams include Google Cloud services and YouTube ads.

Owning Google could help Amazon bolster its nascent advertising business. However, allowing Google to operate independently is more beneficial to Amazon‘s interests. Google has already faced antitrust scrutiny in the past, so further consolidation could invite regulatory troubles.

Analyzing an Amazon-Google Merger

AmazonGoogle
Core BusinessEcommerce, Cloud ServicesSearch Engine, Online Advertising
Market Valuation (as of Feb 2023)$1.08 trillion$1.18 trillion
Total Revenue (2022)$502.5 billion$283.3 billion
Net Profit Margin2.6%30%

Looking at the data above, an Amazon-Google merger could create a technology juggernaut valued at over $2 trillion. However, it does not make much strategic sense for Amazon.

The companies have little overlap in their core businesses, and regulatory scrutiny could hamper growth. Amazon may benefit slightly from absorbing Google‘s ad revenues, but not enough to justify the integration costs. Overall, the move seems unwise for Amazon at this time.

Potential for Future Acquisition?

While an Amazon takeover of Google currently seems unlikely, things could change in the future. If Google‘s growth stagnates while Amazon keeps rapidly expanding, the power balance could shift.

Amazon may decide that Google‘s artificial intelligence capabilities and data trove justify an acquisition. But this scenario is improbable in the near future given that Google remains dominant and highly profitable.

Barring unforeseen circumstances, Amazon owning Google outright remains a hypothetical situation without much credible speculation. The tech giants seem poised to continue their independent growth trajectories going forward.

Smart Home Partnership Still Developing

Although not an outright merger, Amazon, Google, and Apple announced a partnership in 2019 to integrate their smart home products. The smart home market is growing exponentially, expected to reach $158 billion globally by 2024.

With this partnership still in early stages, the three companies aim to enhance compatibility between Alexa, Google Assistant, and Siri. This allows them to better compete against proprietary ecosystems like Samsung‘s SmartThings.

But this technology collaboration is the extent of the relationship between these big tech rivals. When it comes to ownership, Amazon does not hold any stake in Google outside of Jeff Bezos‘ personal investments. The two giants continue to chart their own paths while finding selective partnerships that can benefit consumers.

The Bottom Line

While Amazon has quickly grown into one of the most valuable companies on earth, it does not currently own Google. Acquiring such a dominant force like Google does not fit into Amazon‘s strategy, though the possibility can‘t be ruled out entirely going forward. But for now, the tech conglomerates seem content advancing independently while finding common ground in certain emerging technology areas.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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