Google is likely to buy more companies about the size of YouTube and DoubleClick, its two largest deals, to help offer more online services, the company’s head of mergers and acquisitions said in an interview last week. Dell plans more takeovers in its drive to double the size of its data-center business to $30 billion in sales, a company executive said.
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Internet and computer companies are increasingly relying on acquisitions to gain new technology and customers. Amazon.com Inc. said today it will spend $500 million for Quidsi Inc., owner of Diapers.com. For Google, the largest Internet search company, absorbing more startups could provide fresh ways to sell ads and compete with social-networking sites such as Facebook Inc.
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