HTC CEO Peter Chou brushed aside concerns that Google's (NAS: GOOG) proposed $12.5 billion acquisition of Motorola Mobility (NYS: MMI) will harm HTC and other Android handset makers, calling the deal "good news."
Chou said that HTC does not plan to make its own operating system and intends to work with both Google and Microsoft (NAS: MSFT) to "leverage partnerships" while differentiating its smartphones through software and services. Chou said Google's purchase of Motorola will help bolster HTC's position in patent battle; HTC is currently embroiled in a patent litigation with Apple (NAS: AAPL) over smartphones and tablets.
"This acquisition is more to enhance Google's patent portfolio, to support us, to protect us, so this is good news," he said. He added that HTC will continue to work with Google on Android and that Google has made it clear that its commitment to HTC remains unchanged.
Some analysts have speculated that Google might favor Motorola over other Android licensees and begin to close off the ecosystem as it gets more directly involved in the hardware business. Google has said Motorola will remain an independent business unit and that the platform will remain open source.
Nokia (NYS: NOK) CEO Stephen Elop said this week that the deal should worry Android licensees and that it reconfirmed his belief that aligning with Microsoft's Windows Phone platform, which HTC also supports, was the right decision.
Media reports out of South Korea this week indicated that Samsung is looking to bolster its software prowess in the wake of the Google-Motorola deal, possibly though an acquisition.
At the time thisarticle was published The Motley Fool owns shares of Google, Apple, and Microsoft. Motley Fool newsletter services have recommended buying shares of Google, Apple, and Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.