Why the Heck Would Google Want RIM?
We've got the new (almost) nutty notion of the moment: Google (GOOG) with a 50-50 chance of buying Research in Motion (RIMM). Yes, almost nutty, because, except for one reason, buying RIM would be a huge mistake for Google. The company's recent strategic moves also suggest that it would far down the list that Google would consider.
This isn't the first time that someone suggested that Google should acquire RIM. Most recently, analyst Anton Wahlman suggested that there are three reasons for such a deal:
- Android's reference design will use the same Texas Instruments CPU as RIM will for its QNX-based products.
- The QNX platform has security superior to Android's, which would be good for near field communications (NFC) phone payments.
- RIM has a deep patent portfolio in mobile, which should come in handy in the patent wars between Google and its hardware partners on one side and the rest of the known mobile universe, including Apple (AAPL) and Microsoft (MSFT) on the other.
The QNX stunt double
QNX is a fine operating system -- has been for close to 30 years. Based on Unix and used in embedded systems (computers put into other devices like cars), it has versatility, maturity, and capability. But you don't easily merge operating systems. Take aspects of one and put it into another? Sure. Smack them together like two lumps of clay? Not in a commercial setting.
That's why Apple dumped the Mac Classic OS to migrate to what Steve Jobs brought along from NeXT, when he returned to the company he co-founded. Google has also been working overtime since Larry Page became CEO to reduce the number of unnecessary projects and to focus its resources on things that can make a difference. The company is already maintaining two operating systems with Android and Chrome OS. Add a third to the mix? Nuts.
Google would have to toss either QNX or Android. There is no way it dumps what has become an important strategy for the company's future. Replace Android and you send all the hardware vendors back to the drawing board. That would put Google into the same shoes as RIM, as it waited for new devices to hit the market. Apple could do a lot of damage in that time.
Furthermore, such a switch would play havoc with all the third party developers, because there is no way Google could reasonably ensure that everything would run on QNX, even with an emulation mode (which would slow the whole device down). And forget trying to breathe life into the old BlackBerry software. One of the main assets that RIM could bring would be useless.
That gets to security. Yes, Google could really use it and RIM is the only mobile company that has comparatively mastered the topic. But you don't stick security onto a smartphone. You have to design it deeply into the operating system. Using RIM's security for NFC would mean switching to QNX, which doesn't seem like a smart move.
The impotent all-powerful patent portfolio
The only reason that made any sense is obtaining RIMs set of patents. The company has been in the smartphone business as long as anyone and has 2021 granted patents and close to 3,000 patent applications in process in the U.S. alone. In theory, that could be of great use to Google. I had mentioned last year how buying Palm could have helped Google in terms of patent conflicts. It also eventually became clear that Apple considered buying Palm for the same reason.
But Apple didn't, even though it had all the cash it needed to, and I think I know why. The problem with buying an established mobile player is that the company has likely entered cross-licensing agreements with competitors. That's how the space works. If RIM has such agreements (and it's been largely left alone in the recent patent skirmishes), then buying RIM would only be a preemptive move. It would let Google avoid being sued by RIM or by another company that bought RIM.
Google's made it clear that it wants bodies of patents that it can assert in a battle. If there's existing cross-licensing, then there's no assertion possible.
Put all the facts together, and it doesn't seem likely that Google would buy RIM.
Related:
- Google Gets Caught Blaming Others for Its Patent Woes
- Apple Wanted Palm for Its Patent Wars
- Why Google Should Buy Palm (to Battle Apple)
Erik Sherman is a widely published writer and editor who also does select ghosting and corporate work. The views expressed in this column belong to Sherman and do not represent the views of CBS Interactive. Follow him on Twitter at @ErikSherman or on Facebook.
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