Slashdot Asks: Why Does Google Want To Purchase HTC? (bloomberg.com)
Rumor has it Google is planning to purchase HTC -- or at least a portion of it. The speculation of this has been doing rounds for weeks now, and it reached a new high today after HTC said its stock will stop trading from Thursday, as it prepares to make a "major announcement" tomorrow. Bloomberg reported today: Alphabet's Google is close to acquiring assets from Taiwan's HTC, according to a person familiar with the situation, in a bid to bolster the internet giant's nascent hardware business. HTC, once ranked among the world's top smartphone makers, is holding a town hall meeting Thursday, according to tech website Venture Beat, which cited a copy of an internal invitation. The shares will also be suspended from trading as of Sept. 21 due to a pending announcement, according to the Taiwan stock exchange. Of course Google has made similar moves in the past. It previously owned Motorola for a brief period of time, but that acquisition didn't materialize much. The company has however, since re-hired the Motorola chief it once had, Rick Osterloh, and founded a separate hardware team under his stewardship. Claude Zellweger, the one-time chief designer of HTC Vive, is also now at Google, working on that company's Daydream virtual reality system.
What reasons could Google have to purchase HTC? Share your thoughts in the comments section below.
What reasons could Google have to purchase HTC? Share your thoughts in the comments section below.
peanuts
... to make money with the acquired intellectual property and human capital.
I know, crazy talk. Sorry to have bothered you.
I think the better question is what's different about this time. They already tried buying a device maker once with Motorola (although to be fair Motorola was trying to put a gun to Google's head with patent threats) and while they produced some interesting devices, none of them caught on in the market and they ended up unloading the company a few years later to Lenovo.
I'm curious what their plan is this time around, or they're just buying another slumping handset manufacturer to prop them up for a few years until they realize that they aren't making any money and end up selling the company to a Chinese manufacturer interested in buying the brand.
Its all about the StandAlone VR headset, the HTC Vive Focus.
Google wants to come out with a standalone, non-cellphone, VR Headset, and it is buying HTC's "Focus" development work.
The cellphone parts of the company are nearly worthless.
The Motorola acquisition was more about Google getting their hands on patents to protect themselves from litigation from patent trolls and other competing in the mobile space.
With the HTC purchase, Google (or Alphabet or XXVI or whatever Google is calling itself these days) is likely interested less in their patent portfolio but more interested in the existing infrastructure that HTC has so that Google can manufacture Android devices without having to rely on partners. Manufacturing channels and talented personnel are likely the motivating factors for Google to purchase HTC.
In 2011, VIA technologies sold its graphics subsidary "S3" to HTC, my guess is the are actually interrested in the Graphics Patents and knowledge from S3.
which state the obvious. 1) That HTC is a competitor in the same phone space and that 2) Google has money to burn.
There's a third reason.
Google doesn't know how to innovate anymore. They've gone as far as they can with computers as they are and don't want to sink time and money into finding the next new thing. Instead they're going through a retrenching so that profitability remains relatively high while seeking as many monopoly positions as they can. They already have search and internet advertisement sewn up. The US doesn't have the will to establish a new regulatory regime and the EU doesn't currently have the reach to force the US into following their course. That may change by the time President Stupid is done but that's for the future to decide.
In the meantime, the smart move is for Google to gobble up as much as it can under their Alphabet umbrella and see which keeps bringing in the money.
... ney.
It little behooves the best of us to comment on the rest of us.
I've got just one question: why is this news at all? Even it's true, does it change anything in regard to Android? Hardly so. Also, considering Motorola I'd really doubt they are keen to step into the same river twice. HTC's patents are perhaps the only thing they are after but I'm still doubtful.
It's obvious. They obviously believe the letters HTC belong in the Alphabet.
"That's the way to do it" - Punch
Why? Because HTC is three letters of the alphabet. Next up, IBM.
It's a public service.
Google's plan for purchasing HTC is obviously to fire all the straight (biological) men who work there. Though rumor has it, they may keep around a handful who cross-dress.
The goal is that you will wear your Google clothes in your Google smart home while you eat your Google hamburger while you watch the Google news on your Google telescreen.
Google, well Alphabet really, wants money. It turns out, that if you make and sell things, you can get money!
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
the Pixel phones are made by HTC.
This is the reason any company is acquired. Otherwise, you can just copy. It's why Snapchat is essentially worthless, everything it does can easily be copied.
Might be a VR purchase. Just sayin. Google invested heavily into Magic Leap and it has been vapor. The google dream headset thing has registered a big fat zero. In all honesty Google needs to exit the hardware business, they suck at it. Google voice thing looks like an air freshener and no one wants it.
at the cash register like everyone else.
"Competing phone" doesn't make much sense.
Compared to the rest Google doesn't make much by selling phone. They are not harmed by the existence of manufacturer competing with Google's Nexus line.
They make maybe a little bit more by selling Android licenses to manufacturer who choose to have the complete "Google Experience" (including Google Play Store and other such Google apps and service) instead of the free AOSP. In that case, the more manufacturer producing Android phone, the better for Google, no matter which brand.
They make quite some significant money by taking a fee on all transaction to happen on the Play Store. Again, no real threat by "competitors". On the contrary : the more manufacturer making Android phone, the more potential customers who are going to spend to the Play Store.
Finally the biggest chunk of money, they make through ads. They don't even need android phones for that. Even Apple iOS users are potential eyeballs that they can sell to advertisers. They just need to have as many people going online so they can be exposed to ads, no matter *which smartphone* they use to do it.
(That's why Google is both *developing* their own Chrome browser AND *financially supporting* Mozilla's effort on Firefox. Firefox isn't a *competitor*, it isn't a product that is "diverting revenue" from Chrome - that would be difficult given that Chrome is free. They are both parallel mean to achieve what Google actually needs : people getting online on the net where Google can profit of them because they are the biggest advertiser).
None of the above will cause Google to see HTC as "competition" that they need to buy.
"Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
That they didn't just want to purchase THC?
Anyone with that many teeth that smiles that much, you just can't trust them.
If they bring back the HTC One MAX, I'm all in favor of this. I loved that phone, just the right size for me.
"I believe in Karma. That means I can do bad things to people all day long and I assume they deserve it." : Dogbert
1) Patents
2) A notch in the belt for the executives responsible for the decision
They can give money for firms that they want a US firm to buy.
They're bored with making an utter fucking mess of software. They want to do it with hardware now.
Though they'll probably say "synergy" or some such twaddle.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Well, just kidding, but maybe it is for the very same reason they bought and sold Motorola. They wanted the patents. I doubt Google has a need for more manufacturing capacity, that is, unless they have a plan for far greater production or of production of new products.
You can lead a man with reason but you can't make him think.
I predict I, B, and M will be their next purchase.
They have innovated the following:
The relationship between Handset makers and Google is a very tense one, to say the least.
That's why things like TouchWiz (Samsung), EMUI (Huawei), LGUX (LG) and other "Non-Stock android" UI still exist. Yes, those were necesities when Android's UI was primitive, and not to the liking of certain markets (Like South-East Asia, for instance).
If one of the big guys breaks up with google and slaps their UI on top of AOSP, or Bada, or BB10, the users would be none the wiser. Especialy in markets like India or Chine, were the dominant services are NOT Google's.
At the same time, google tries to move forward the ecosystem, both in terms of hardware capabilities (AR is the latest example), and in therms of Software updates... Sometimes, they try the carrot, sometimes the stick. After google got the Motorola patents, they used motorola for a while as one of the Sticks. Now, they need another stick... Enter HCT.
Alphabet will slurp any patents and interesting tech that HTC may have.
The phone division will make a couple of interesting handsets (the reference designs will still be awarded in a kinda-sorta-of-round-robin-fashion to partners like LG, Samsun, Lenovo, HTC itself, etc.), with very-close-to-stock-Android, and decent update cycles too. And after a few years, will be sold to some emerging handset maker in China or India, which is in the Top 10 global handset maker chart, but only by virtue of the sales in their home market, which needs a globaly recognized brand to help their internationalization (TCL owning the Alcatel, BlackBerry and Palm brands is a good example).
Then, after a few years, when Google needs another stick, they will buy yet another formerly great handset maker with a recognizable brand, and repeat the cycle...
*** Suerte a todos y Feliz dia!
I'm pretty sure there were search engines before Google. It's a long time ago, but I just remember switching to it because it was better than the others.
Gmail? Just another webmail site that was better than Hotmail and Yahoo. The biggest innovation was scanning all the emails to send you ads.
Advertising? Maybe, but that's not really an innovation I appreciate.
Maps? Again, there were plenty of maps before Google, though you probably had to pay for them.
Maybe Google Earth, but it's still just an extension of maps.
If Google want to dominate Android eco system they have to prepare HW platform against Samsung in a "Divide et impera” or “divide and conquer " style. Samsung is getting stronger and this is counterbalance for future position against them. Do not forget that Samsung is trying to copy every single service and functionality to their platform. They have money, power and political support from local authorities (do not be fooled with some local shows). This is preparation that Android eco system is not HW dependent from major HW player. After Google will swallow HTC, thy will digest IP and sell rest to some healthy company with good margin.
We want to buy up everything in the world because it's... it's... it's GOOD for you! Yeah, that's it, that's the ticket. Totally not because we want to rule the world or anything....
Beware of Sales Reps bearing gifts.
I've concluded that Google has a difficult time with long term strategy. Other then collecting huge amounts of data for better targeted ads. This is what happens when you make boat loads of money from ads, and you don't have to have a real plan for success with anything else. You just do it because you want to.
"Why not?"
We suffer more in our imagination than in reality. - Seneca
Everyone is scrambling to explain how this is such a great a business idea for Google, just like some people were trying to explain how great it was that Oracle took over Sun Microsystems. I think we're observing a very similar situation. We all have observed what Oracle has turned Sun Microsystems into, pretty much a ghost. I think the same will happen with HTC.
Google has no coherent plan for what to do with HTC. Probably some kind of a young MBA made a great a case for the management that they need to own a hardware business. The rest we'll see soon. It won't be pretty or interesting.
Bacon.
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You have to want to solve problems in order to innovate. You have to have competitive pressure in order to force innovation to happen. Right now, I don't see an environment in the US where the powers that be want problems to be resolved or are willing to break companies apart to force innovation to happen. Now, individuals feel otherwise. Income distribution seems to be a popular place to start. Or for there to be unlimited internet everywhere is another good one. Or better, cheaper healthcare.
But none of these are addressable through technology. Apple, Google, or Amazon aren't who we should be looking to for that. The problems those companies are good at solving have been solved by them.
I used to feel the same way about advertising, but then I got to thinking that the reason I can use the Google ecosystem to save myself time and effort at numerous tasks is because of the advertising the tech they use to gather metrics for it. So, I am cool with it now.
What's the deal with Google and HTC? and From the Editor's Desk: HTC x Google These seem to be well thought out and in more depth than many. It sounds like Google and HTC complement one another pretty well in what it takes to succeed in the smartphone business, and it also sounds like Google is getting excellent manufacturing at a very good price. I wonder how long before they also have a product that competes well with MS Surface?
Google Earth was an acquisition of Keyhole
Google Maps was an acquisition of Where 2
And they were both many many years ago (2001 and 2004).
Not much lately apart from innovations in AI.
For me the best recent innovation is probably Google Photos.
Once they have the IP rights the rest of the company is dross. They just need to bolster their very busy legal team at every opportunity. The money is not in shipped goods, it's in the value of the "services" they sell and the ability to hammer competitors mercilessly in the legal domain.
Innovate doesn't mean invent. Even the iPhone was innovation, though it was not the first smart phone. Even the new iPhone is innovation, even though it's not entirely new.
Words have meanings. Dictionaries are available online and for free. Please consider using one.
"So long and thanks for all the fish."
Don't believe this at all. What is going on is 100% behind the scenes and you won't like it one bit. This is a ploy by Google and China. First, Google wants more of China and will do ANYTHING to ANYONE for that access because $$$ means more than anything to this athesist pile of crap of a corporation. China loves this even more. Yes, the company is actually located in Taiwan China has a great deal invested in HTC with agreements with China Mobile and others to cross-sell and manufacture Chinese products. By Google being partial owners of HTC many tarrifs will no longer apply as it is an "American owned" company.
The dirt is in the details and Google translates to "dirt".