Google scouts for buys to expand in southeast Asia

HONG KONG: Google may buy technology assets to expand in Southeast Asia, following Internet operators including Tencent Holdings and Living-Social in acquiring companies to add services and users in the region . “We’ll continue to innovate ourselves, but where it makes sense, we will look out for opportunities ,” Julian Persaud, managing director for Google in Southeast Asia, said in a video conference from Bangkok Wednesday, without elaborating. He could not immediately confirm if the US company previously made an acquisition in Southeast Asia. Google, owner of the world’s most-popular search engine, is stepping up expansion in countries , including Thailand, Malaysia and Indonesia, where companies allocate a smaller proportion of their advertising spending online compared with the US and Europe.

Tencent, China’s biggest Internet company by revenue, and LivingSocial, the second-biggest coupon site, have unveiled investments in Southeast Asian Web firms in the past two years. Internet advertising accounts for 1% to 2% of the marketing spending of companies in Southeast Asia, excluding Singapore, Persaud said. That compares with 27% in the UK, and about 20% in Australia and the US, he said. “We have proven recently as a company, that we are prepared to make acquisitions , wherever it makes sense,” Persaud said.

“It wouldn't make sense to exclude a part of the world, and say we wouldn’t look there.” Earlier this month, Google agreed to buy Motorola Mobility Holdings for $12.5 billion in its largest acquisition. The Mountain View, California-based company will focus its efforts on Google+, rather than Orkut, in Southeast Asia’s social-networking market, Persaud said. Google is working on developing local versions of products including mapping and the Chrome Web browser, he said.