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Apr 26, 2018 02:20 PM IST | Source: Moneycontrol.com

Famous companies that were bought for less but are now raking in billions

Here are 10 smart bets from companies that were futuristic and are giving excellent returns to their owners

Shubham Raj @jaRmahbuhS
Microsoft-LinkedIn | $27 billion | Software giant Microsoft perhaps overpaid to acquire LinkedIn in 2016, but in the long run, it is expected to pay off. With its 530 million users and online education platform Lynda.com in its portfolio, the subsidiary already contributed a revenue of $1.3 billion in the second quarter. Microsoft CFO Amy Hood said in January, it was "performing better than we expected”. (Reuters)
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Microsoft-LinkedIn | $27 billion | Software giant Microsoft perhaps overpaid to acquire LinkedIn in 2016, but in the long run, it is expected to pay off. With its 530 million users and online education platform Lynda.com in its portfolio, the subsidiary already contributed a revenue of $1.3 billion in the second quarter. Microsoft CFO Amy Hood said in January, it was "performing better than we expected”. (Reuters)

Facebook- WhatsApp | $22 billion | The deal which at the time of acquisition was said to be expensive, is eventually paying off. WhatsApp’s user base has grown from 450 million in 2014 to 1.5 billion worldwide—that brings the acquisitions cost per user (and their data) to a mere $15. Not bad! (Reuters)
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Facebook- WhatsApp | $22 billion | The deal which at the time of acquisition was said to be expensive, is eventually paying off. WhatsApp’s user base has grown from 450 million in 2014 to 1.5 billion worldwide—that brings the acquisitions cost per user (and their data) to a mere $15. Not bad! (Reuters)

Disney- Pixar | $7.4 billion | To expand its footprint in the entertainment industry, Disney bought Steve Jobs-led Pixar in 2006. By then, Pixar already had blockbusters like "Toy Story", "Finding Nemo" and "The Incredibles" under its name. Post the acquisition, worldwide revenue from Pixar’s 13 productions has been $8.6 billion, according to BoxOfficeMojo. (Wikimedia Commons)
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Disney- Pixar | $7.4 billion | To expand its footprint in the entertainment industry, Disney bought Steve Jobs-led Pixar in 2006. By then, Pixar already had blockbusters like "Toy Story", "Finding Nemo" and "The Incredibles" under its name. Post the acquisition, worldwide revenue from Pixar’s 13 productions has been $8.6 billion, according to BoxOfficeMojo. (Wikimedia Commons)

Disney- Marvel | $4 billion | The house of Mickey Mouse, Donald Duck and other popular cartoon characters acquired the comic book publisher cum superhero franchise in 2009 and it has continued to rake in the moolah. Since the acquisition, Marvel-licensed movies have grossed $20 billion worldwide and this doesn't include revenue from books, merchandise etc. (Reuters)
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Disney- Marvel | $4 billion | The house of Mickey Mouse, Donald Duck and other popular cartoon characters acquired the comic book publisher cum superhero franchise in 2009 and it has continued to rake in the moolah. Since the acquisition, Marvel-licensed movies have grossed $20 billion worldwide and this doesn't include revenue from books, merchandise etc. (Reuters)

Google- DoubleClick | $3.1 billion | If Google is the king of online advertising today, much of the credit goes to its decision to acquire DoubleClick in 2007. DoubleClick’s tracker is present in nearly one-fifth of all pages on the internet, a study has shown. Along with Google Analytics and AdSense, it gives the internet giant an edge over others in a highly competitive market. (DoubleClick)
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Google- DoubleClick | $3.1 billion | If Google is the king of online advertising today, much of the credit goes to its decision to acquire DoubleClick in 2007. DoubleClick’s tracker is present in nearly one-fifth of all pages on the internet, a study has shown. Along with Google Analytics and AdSense, it gives the internet giant an edge over others in a highly competitive market. (DoubleClick)

Google- YouTube | $1.6 billion | Perhaps, one of the most intelligent bets by Google, in 2006, Larry Page led company bought the video streaming site for just $1.6 billion. Today, it is the second most visited site in the world with an average time spent by users on the site being 8.21 minutes, as per Alexa. Various estimates now peg YouTube valuation from $26 billion to $86 billion. (Reuters)
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Google- YouTube | $1.6 billion | Perhaps, one of the most intelligent bets by Google, in 2006, Larry Page led company bought the video streaming site for just $1.6 billion. Today, it is the second most visited site in the world with an average time spent by users on the site being 8.21 minutes, as per Alexa. Various estimates now peg YouTube valuation from $26 billion to $86 billion. (Reuters)

eBay- PayPal | $1.5 billion | In 2002, the online marketplace firm bought the 4-year-old startup in which Elon Musk was also associated. The deal was finalised soon after the company’s IPO and it was delisted from exchanges. Incidentally, in 2015, after a split, when PayPal hit the stock market as a standalone company again, it was worth a whopping $51 billion. (Reuters)
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eBay- PayPal | $1.5 billion | In 2002, the online marketplace firm bought the 4-year-old startup in which Elon Musk was also associated. The deal was finalised soon after the company’s IPO and it was delisted from exchanges. Incidentally, in 2015, after a split, when PayPal hit the stock market as a standalone company again, it was worth a whopping $51 billion. (Reuters)

Facebook- Instagram | $1 billion | In one of the smartest technology acquisition, the social media giant bought Instagram in 2012. Today, the photo-sharing app is used by over 800 million users up from 30 million, six years back. Instagram, along with WhatsApp, makes Facebook Inc. a dominant force in mobile internet space which would not have been possible otherwise. (Reuters)
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Facebook- Instagram | $1 billion | In one of the smartest technology acquisition, the social media giant bought Instagram in 2012. Today, the photo-sharing app is used by over 800 million users up from 30 million, six years back. Instagram, along with WhatsApp, makes Facebook Inc. a dominant force in mobile internet space which would not have been possible otherwise. (Reuters)

Google- Android | $50 million | Purchased at a dirt cheap price, Android is one of the most potent weapons Google has today. Android currently powers over 80% of smartphones globally. Despite being an open source and free operating platform, it helps Google rake in billions from ad displayed on those mobile phones. It also routes a bulk of search traffic to Google. (Reuters)
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Google- Android | $50 million | Purchased at a dirt cheap price, Android is one of the most potent weapons Google has today. Android currently powers over 80% of smartphones globally. Despite being an open source and free operating platform, it helps Google rake in billions from ad displayed on those mobile phones. It also routes a bulk of search traffic to Google. (Reuters)

Berkshire Hathaway- See’s Candy | $25 million | The firm which pioneered the idea of value investing bought See’s Candy in 1972. And, according to Warren Buffet’s own admission, over 40 years it has brought in a staggering $1.65 billion in total profits. With a yearly profit of 82 million for the confectionary, each year the investment firm now earns three times it invested in 1972. (Dollar prices quoted above are not adjusted to inflation.)
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Berkshire Hathaway- See’s Candy | $25 million | The firm which pioneered the idea of value investing bought See’s Candy in 1972. And, according to Warren Buffet’s own admission, over 40 years it has brought in a staggering $1.65 billion in total profits. With a yearly profit of 82 million for the confectionary, each year the investment firm now earns three times it invested in 1972. (Dollar prices quoted above are not adjusted to inflation.)

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