Apple, which on Wednesday closed the first of two major deals that would create its own Internet giant, is closing the second of its own to buy Google for $2 billion.
The deal will create a new Internet company with the potential to become the world’s biggest in terms of revenue.
Google, which is expanding into new markets, was a target of Apple’s first two deals and the Apple acquisition would add Google to that list.
Apple Chief Executive Officer Tim Cook told investors in a conference call Wednesday that the deal would create a company with more than 25,000 employees, more than 2,000 stores and a presence in 25 countries.
Cook said that the combined company would have $6 billion in annual revenue.
The transaction, announced Wednesday by the Apple board, was one of the biggest in history, eclipsing the $1.1 trillion Google’s second deal with Yahoo in June.
Cook and CEO Sundar Pichai had said earlier that the search giant was looking for a partner with a global presence to make Google search more appealing to users and improve the company’s ability to serve advertisers.
The two companies will also share revenue, the CEOs said.
Apple shares rose $2 in premarket trading, to $106.10 in after-hours trading.
Google’s shares fell $3, or 2.3%, to $99.96.