scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior scenario b: spend cash

scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior scenario b: spend cash you can easily afford, have an immediate cash flow return, get a solution that is known to work, eliminate competitive threat without pissing off anyone in the process while ingesting talent at the same time it's fairly easy to see why GOOG chose the latter option.