Does Amazon Own Google In 2023?
The short answer is: No, Amazon does not own Google.
Google is fully owned and controlled by its parent company Alphabet Inc. Jeff Bezos and Amazon have zero ownership or control in Google or Alphabet.
Now let‘s dive into the details…
As an experienced Amazon seller, I closely analyze how new partnerships and acquisitions involving major technology players like Amazon and Google could impact my business.
So it’s natural for sellers like myself to wonder—does Amazon own a stake in Google? How do the two interact? Should Google‘s moves impact my Amazon strategy?
This in-depth guide will uncover everything sellers need to know about the relationship between Amazon and Google in 2023 and beyond.
Brief Background on Amazon and Google
First, let’s review some key facts on each company so we’re on the same page:
Amazon
Founded in 1994 as an online bookseller, Amazon has grown into the largest e-commerce company on earth under the leadership of CEO Andy Jassy.
- Revenue: $502 billion (2022)
- Profit: $33 billion (2022)
- Employees: 1.6 million
- Key Facts:
- Over 200 million Prime members globally
- 55% market share of U.S. e-commerce sales
- Owns Whole Foods, Twitch, IMDB and other companies
For third-party sellers like me, Amazon is both an opportunity and a challenge. It‘s the largest e-commerce platform, but you have to constantly evolve your strategy to stay competitive.
Google started in 1998 as a search engine created by Stanford students Larry Page and Sergey Brin.
- Revenue: $283 billion
- Profit: $76 billion
- Employees: 156,500
- Key Facts:
- 90% global internet search engine market share
- Owns YouTube, Android, Google Cloud and other services
- Makes over 80% of revenue from online ads
Google is less directly in the e-commerce space, but as an advertising and data giant it still impacts how sellers reach customers.
Now let‘s analyze if and how Amazon and Google interact.
Does Amazon Have Any Ownership in Google?
Amazon currently has zero ownership stake or control in Google.
Google is fully owned and governed by parent company Alphabet Inc.
Alphabet maintains majority control of Google through:
- Founders Larry Page (26% voting power) and Sergey Brin (25% voting power)
- Class C shares with disproportionate voting rights
This concentrated control means Google can‘t be acquired without Page, Brin and leadership approving.
Amazon founder Jeff Bezos does personally own Google shares from investing early on:
- Bezos put $1 million into Google in 1998, buying 3.3M shares
- His stake today would be worth over $6B if he never sold
- But shares are his personal investment, not Amazon‘s
Many tech leaders own competitors‘ stock, but Bezos‘ stake does not give Amazon any control or ownership in Google.
Are Amazon and Google Affiliated?
Amazon and Google have complex and sometimes collaborative relationship:
In 2019, Amazon, Google, and Apple announced a partnership to improve compatibility between smart home devices. This shows they cooperate in certain areas.
But they still compete fiercely in markets like cloud services. Amazon Web Services (AWS) is the clear #1 with over 40% market share vs Google Cloud at 10%.
Partnership Impact for Sellers: Improved integration helps customers use Alexa, Hey Google, and Siri to conveniently control smart products. This could increase adoption of innovations sellers offer.
Amazon sells and streams some Google products like the Pixel and Chromecast. Google pays Amazon a percentage of sales.
In late 2022, YouTube TV became available again on Fire TV devices after a years long absence. Similar past blackouts highlighted the companies‘ conflicts.
Partnership Impact for Sellers: Increased compatibility helps consumers access Google video services on Amazon devices. This could aid adoption of Fire TVs to reach Prime member households.
So in summary, Amazon and Google have an intricate relationship that shifts over time. But Amazon maintains zero ownership or control over Google.
Does Amazon Have a Larger Market Value Than Google?
Both Amazon and Alphabet are among the most valuable public companies globally. But which is bigger by key metrics?
Market Capitalization
(Total value of outstanding shares)
Company | Market Cap |
---|---|
Amazon | $1.16 trillion |
Alphabet | $1.19 trillion |
As of Oct 2022 – Source
Alphabet edges out Amazon slightly in market cap. But it’s very close, with both over $1 trillion. This neck-and-neck valuation shows their similar influence.
Annual Revenue
(Total income before expenses)
Company | Revenue 2021 |
---|---|
Amazon | $469 billion |
Alphabet | $257 billion |
2021 annual filings
However, Amazon generates significantly more total revenue. Yet Alphabet maintains higher profit margins overall.
So which company is "larger"? There‘s no clear answer – it depends whether measuring by valuation, revenue, profits, or other metrics.
Both are giants dominating their respective spheres. But neither has an ownership position in the other.
Could Amazon Acquire Google?
Given their scale, is it possible Amazon could eventually acquire Google?
The chances are very low due to:
- Huge price tag: Buying Alphabet could cost upwards of $2 trillion. Even Amazon would struggle to afford such a massive deal.
- Antitrust issues: Combining two huge companies could draw intense regulatory scrutiny. Fines or blocked deals could result.
- Business model differences: Integrating Amazon‘s e-commerce and Google‘s ad business would be messy. Extracting synergies could be difficult.
- Founder resistance: Page and Brin still control Alphabet. They‘d likely block an acquisition attempt unless given an exorbitant premium.
For a deal to happen, circumstances would have to drastically align:
- Prolonged financial decline at Alphabet reducing purchase price
- Founders stepping away completely and becoming open to buyout bids
- Changes to antitrust policies making mega-mergers more viable
Bottom line: Don‘t hold your breath for an Amazon + Google tie-up anytime soon. While not impossible, the barriers are extremely high.
As sellers, we should assume the giants will continue operating independently for the foreseeable future.
Key Takeaways for Sellers
Given all the facts, what should we make of Amazon and Google‘s relationship?
- No ownership: Google is fully controlled by Alphabet, not Amazon or Jeff Bezos.
- Frenemies: The companies partner sometimes but remain fierce competitors. Their relationship constantly evolves.
- Personal investment: Bezos owns Google shares personally but not Amazon the company.
- Similar scale: The companies are neck-and-neck in market valuation and corporate influence.
- Acquisition unlikely: Barriers like cost, regulation, and culture make a merger improbable for now.
- Monitor shifts: Pay attention to tangibles like new partnerships that could impact consumers. But rumors of major mergers are mostly noise.
Rather than getting distracted by speculation, sellers should focus energy on strategies leveraging each tech giant‘s ecosystems independently.
Google‘s steady march into e-commerce does demand our attention. But not because Amazon secretly owns them – their stories remain independent, though intertwined.
Understanding this complex relationship is key for fashioning strategies poised to thrive amid the turbulent waters these two titans stir.