Google Acquisition: Sometimes, companies such as Google Inc (NASDAQ:GOOG) make an acquisition more for talent and less for the products and services the company offers. This seems to be the case with the latest move by the search engine giant.
Google Inc (NASDAQ:GOOG) is one of the hedge fund industry’s most popular stock picks, but it’s been displaced by a financial stock recently (see which one here).
Engadget is reporting that the company has acquired Toronto startup DNNresearch. For a better idea of what the company brings to the table, take a look at this brief excerpt:
“The group is being brought into the fold after developing a solution that vastly improves object recognition. As a whole, advances in neural nets could lead to the development of improved computer vision, language understanding and speech recognition systems.”
As you can see, Google Inc (NASDAQ:GOOG) appears to be acquiring the company for its talent in the object and speech recognition space. In this case, the talent includes Geoffrey Hinton, Alex Krizhevsky, and Ilya Sutskever.
The same article published the official press release, adding some more information about the team.
“Hinton is world-renowned for his work with neural nets, and this research has profound implications for areas such as speech recognition, computer vision and language understanding.”
In other words, Google knows that they are getting a team of people who have advanced knowledge of these areas.
The press release goes on to add the following regarding the arrangement:
“The Google deal will support Prof. Hinton’s graduate students housed in the department’s machine learning group, while protecting their research autonomy under academic freedom. It will also allow Prof. Hinton himself to divide his time between his university research and his work at Google.”
Terms of the deal were not disclosed. That being said, it is safe to say that Hinton, Krizhevsky, and Sutskever are happy with the news.
Do you agree with Google Inc (NASDAQ:GOOG)’s strategy to acquire DNNresearch? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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