What’s the deal with Google and HTC?

Rumors out of Taiwan suggest that Google is preparing to purchase some, or all, of HTC’s smartphone division. If true, it would mark a sad end for the company that built the first Android phone. What’s not clear, however, is why Google wants to buy HTC, and what it’s looking to get out of the deal.

What’s going on?

Yesterday, reputable Taiwanese website Commercial Times reported that Google is looking to buy HTC. The piece cites the search giant’s burgeoning hardware business and its struggles to mass-produce its own hardware. Later on, there’s mention of Google’s desire to integrate its software with hardware in a way similar to how Apple “owns” all parts of its business.

The language is ambiguous, but what’s plausible is that Google wants HTC’s mobile division without the added baggage of Vive. That’s good, because Vive was spun out of its parent company last year and exists as a standalone subsidiary (that may also be sold). So perhaps we can expect the deal to mirror that of Microsoft and Nokia, whereby the holding company and Vive are untouched, but Google takes everything else.

One note of cynicism, however, is that Google doesn’t really need to buy HTC to make its stated aims work. HTC is already the contract manufacturer for the Pixel, and there has clearly been issues producing that device in the quantities Google needed. Buying the Taiwanese company to simply own its own factories seems counter to the logic of almost every other big technology business — which use contract manufacturers in China like Foxconn and Pegatron.

Why HTC?

Rumors of HTC’s demise have been raging on for some years, and the business is now in serious trouble. In 2015, HTC’s share price fell below that of its valuation, which is investor-speak for saying that business-types considered it worthless. HTC posts monthly revenue data, too, and watching its handset sales gently dwindle makes for grim reading.

In the last eight months, the company’s sales have fallen as far as 54 percent below what they were just a year ago. There is the occasional spike in sales, sure, such as when it launches a new device, but that’s all that’s stopping the graphs from looking like a ski slope. As a consequence, HTC stands on pretty shaky ground, and is ripe for an acquisition.

Why is HTC in trouble?

Back in 2015, we asked if HTC was at risk of becoming the first big Android business to go to the wall. The company is weak on several fronts, and has been undercut on the lower-end by low-margin Chinese businesses who can compete on quality. At the higher-end, HTC doesn’t have the advertising clout to go toe-to-toe with Samsung or LG. Here’s an easy way of understanding things: would you rather buy HTC’s U11 or a Galaxy S8, V30 or OnePlus 5?

HTC’s business has also been at the risk of simply not having the cash to cover its losses like it would if it was a conglomerate. When outfits like Sony and LG loses millions on phones, they simply shift cash from profitable divisions like PlayStation and TVs to cover the gap. HTC has no such insurance plan, since its core business is the manufacture and sale of smartphones. As the Android world has seen profits evaporate for all but a few, HTC’s dominance and prestige has withered.

Why is HTC a good prospect for Google?

Because, fundamentally, HTC’s actually a very good company that simply can’t compete with its wealthier rivals. Its devices, like the U11, earn plenty of critical praise and HTC has a small, but dedicated following. There are few people who want to see HTC reach such an ignominious end. Not to mention that Google picked it to manufacture the Pixel for a reason, since the company is pretty choosy who it selects for a partner.

On the flip side, it’s likely that HTC is available for little more than a couple of bags of potato chips and a crate of beer. A cursory look at the company’s financial reports demonstrate just how deep its losses run. There’s around $838 million cash in the bank, and HTC’s total assets run to around $2 billion, not to mention its cratering stock price. We’re not financial journalists and it would be reckless to guess at a purchase price, but it’s gonna be low.

Not to mention all of the various creative accounting Google’s accountants will inevitably invoke. HTC’s going to look like even more of a bargain compared to the $12.5 billion Google spent to buy Motorola back in 2011. There’s also the fact that Google, like so many big tech companies, can use some of its overseas profits to fund the purchase. Since it would cost more than Google’s leadership is prepared to pay in tax to repatriate, it makes sense to spend it on something nice.

Oh, Motorola! That’s why I was getting deja vu!

Yup, this isn’t Google’s first rodeo when it comes to buying a handset manufacturer that’s fallen upon hard times.

Why did Google buy Motorola?

Settle in for a potted history of the deep, dark times back in 2011, when the tech industry was locked in a war over patents. This was back in the days of Steve Jobs declaring “thermonuclear war” on anyone who he thought was copying Apple’s iPhone. It was a great time for lawyers, court reporters and… pretty much nobody else.

In 2009, Canadian telecoms giant Nortel went bankrupt, and one of its biggest assets was its vast patent library. There were around 6,000 mobile-related patents in the library, which was a huge cache of weapons in the smartphone wars that played out in the courtroom. The portfolio was purchased by the Rockstar Consortium, a supergroup of tech companies, including Apple, BlackBerry, Microsoft and Sony, which spent $4.5 billion to own the lot.

The conspicuous name missing from that list was Google, and the expectation was that Rockstar would sue the search engine into oblivion. As a consequence, Google opened its checkbook to buy Motorola, which had reportedly had 17,000 patents and 7,500 applications. If Google felt as if it had initially brought a knife to a gun fight, it quickly reminded everyone that it had enough cash to run to the bazooka store.

An additional reason Google bought Motorola, espoused by Forbes, was that Google used Motorola as leverage over Samsung. The search engine was annoyed that its Korean frenemy was becoming too popular and was hiding Android behind its own TouchWiz skin. Coupled with Samsung’s development of Tizen as an alternative operating system, Google needed to bring its troops in line.

Google would sign a deal with Samsung, offering it the protection afforded by Motorola’s patents, if it left Android alone. The minor existential threat dealt with, and Google was able to sell off Motorola, knowing that the Korean giant was no longer able to become a full-blown rival.

The economics of the deal

The patent wars came to an end, and there was a belief that Google really did overspend for what it got. But according to both the New York Times and Google’s M&A Chief, Don Harrison, Motorola was secretly a bargain.

That’s because of the $12.5 billion purchase price, the company had around $3 billion in cash and $1 billion in extra tax credits. Then, Google sold off Motorola’s home and TV business for $2.5 billion, before then selling on the phone division for a further $3 billion. So those patents and all of the various leverages the deal gave to Google wound up costing just $3 billion.

Will Google do the same with HTC?

That’s doubtful, both because the days of blockbuster patent maneuvering is long gone, and HTC’s patents don’t appear to be anything to write home about. What HTC has, aside from a slightly-tarnished brand, is know-how in contract manufacturing. Not to mention the research and development teams that have earned plenty of praise with their smartphones. As before, the only really plausible reason that Google would want HTC is to turn it into Google’s own internal hardware division.

Lightning round:

• Would Google do this as a way of saving HTC, its first partner?
  No, billion dollar companies don’t make a habit of bailing out their friends just out of a sense of generosity. Especially not at the newly-prudent Alphabet.
• Would Google buy HTC as a way of reassuring the Android ecosystem?
  Phone calls are reassuring, billion dollar buyouts are something else.

So what happens now?

Right now, nothing. This is just a rumor, and the only people who know the truth are holed up in Google’s HQ. But whatever happens, it’s going to be fun to see if Google can reinvigorate HTC as a part of its own hardware business. Or not.

Source: Commercial Times

YouTube HDR is available for a bunch of new phones

The Galaxy S8 will already play Netflix in high-dynamic range video, and now the handset (and its cousin, the Note 8) is the home for YouTube HDR. Reddit users have had access to the update since yesterday at resolutions up to 1140p60, while SamMobile reports that the publication can only access 1080p60. On our office S8, we’ve seen 1440p60. Google tells us that the Pixel, LG V30, Sony Xperia XZ Premium have gotten the update as well. More than that, the search juggernaut is working to bring it to even more devices.

Via: Reddit, SamMobile, The Verge

Microsoft’s latest Mac app is a toolbar for Office 365

Microsoft’s Garage team has a new tool designed to make using Office 365 on your Mac a little easier. My Workspace is a menu bar that offers quick access to pinned documents, OneDrive files, your iCloud calendar and Skype calls. The tool sits in the system tray and is pretty unobtrusive, as you can see in the embedded video. As iMore notes, the tool was designed by interns in Vancouver who were tasked with a way to “add value to a person’s day” if the person was using Redmond’s productivity suite. Interested? Check out the download links below.

Via: iMore

Source: My Workspace

‘Arms’ update adds user-customizable controls

Nintendo announced today on Twitter that the Switch fighting game Arms is getting an update that will probably make a lot of players pretty happy. With version 3, Arms will let users map the controls to the buttons they prefer, which is good since a number of Arms players have found the set configurations to be a bit unintuitive. You can see how the control customization feature will work in the tweet below.

Big news, fighting fans! #ARMS Ver. 3 will allow you to remap the controls to the buttons of your choice! How’s that for flexibility? pic.twitter.com/AE8DmijTzO

— Nintendo UK (@NintendoUK) September 8, 2017

Another character is also on the way. Lola Pop is a candy-coated clown who can inflate her body like a balloon as a defense tactic. Check out her trailer below. There’s no word yet on when version 3 will be released, but Nintendo says it will be out soon.

Via: Polygon

Source: Nintendo

Zelle’s bank-backed payments app launches September 12th

We’ve been talking about Zelle, a mobile payments system backed by over 30 major US banks, for over a year now, but the service has yet to release a standalone app. That is, until now. Zelle’s app is finally launching on Tuesday, September 12th. It will be available in the App Store and on Google Play.

Zelle has also put a special partnership with Mastercard and Visa into play with its app. If you have one of these two branded debit cards in connection with a US bank account, you can send money through the Zelle mobile app, regardless of whether the recipient’s bank participates in Zelle. You can also continue to use the Venmo competitor through your bank’s mobile app, using a phone number or email address to send money. The standalone app just provides more options for Zelle’s network.

Via: TechCrunch

Source: Zelle

The best media streaming devices

By Chris Heinonen

This post was done in partnership with The Wirecutter, a buyer’s guide to the best technology. When readers choose to buy The Wirecutter’s independently chosen editorial picks, it may earn affiliate commissions that support its work. Read the full article here.

The best media streaming device for most people is the updated Roku Streaming Stick. It’s as fast to use as any streamer available and has a wider selection of apps than others offer. And unlike its main competitors, Roku doesn’t try to sell content from its own store; rather than prioritizing one streaming service over another within its interface, it lets you customize what it displays to suit your preferences.

Why you might want a streaming device

We tested all the major streaming boxes on the market. Photo: Chris Heinonen

Streaming devices have the ability to play far more content than what most TVs or Blu-ray players offer. Support for newer streaming services such as HBO Now and Sling TV also comes to streaming boxes before it comes to TVs. Streaming boxes can also give you easy access to local content you already own and play it on any TV in your house, without needing to hook up a PC to your display. They also tend to have a better user experience, with more channels, a more responsive user interface, and better search features than the streaming services built into your TV.

A good streaming device also has a well-organized search feature that helps you find your content for the lowest price possible. Many streaming devices search across a limited number of services or prioritize content from a source where they earn income. For instance, the Amazon Fire Stick puts Amazon content at the top of the screen. The best streamers search through more services and provide both free and pay options to help you find your content at the lowest price.

Our pick

Photo: Chris Heinonen

The Roku Streaming Stick is the fastest 1080p streamer available, offers the widest selection of content and the best interface, search, and user experience. The only major service missing is iTunes, but Apple doesn’t open that to anyone. And when new services launch, Roku is typically among the first—if not the first—to offer support. It has a great search feature that organizes content by price, helping you easily find the least expensive source, and you can customize the look of the interface to place your favorite apps at the top.

It is HDMI-only, so you’re out of luck if you own an older TV with only component video. The Roku Streaming Stick also doesn’t do well with local media playback, having completely dropped the local USB port (the built-in USB port is for power only). Your best option for local playback on a Roku is to use Plex on a computer or NAS device along with the Plex app on the Roku.

Runner-up

Photo: Chris Heinonen

The December 2016 update to the Fire TV Stick added voice search using Amazon’s Alexa virtual assistant, and even better, the search feature now encompasses more services, including Netflix, Amazon, HBO, and over 75 apps in total. The included remote has a microphone for this updated search feature, and it also supports most things Alexa can do from an Echo or Dot, including home control.

The updated Amazon Fire TV interface is a huge improvement over previous versions. The main page now has rows for different apps, including Netflix, showing you the most recent titles you’ve watched there. Previously only Amazon content was pushed in this way, making Netflix and other apps second-class citizens. The new interface isn’t perfect, however, as it can’t be customized and you can’t add titles from Netflix to your watch list like you can with Amazon content. But crucially, accessing most of your favorite channels and apps with the Fire TV is as easy as it is with the Roku, sometimes easier.

A pick for UltraHD Streaming

Photo: Chris Heinonen

If you want to stream UltraHD content and your TV or projector lacks support, the Roku Premiere+ is the best option available today. It supports both Netflix and Amazon with HDR and WCG support with more channels being added as HDR content rolls out. It has the same simple interface and search feature as the Roku Streaming Stick.

The Premiere+ has HDMI 2.0a and HDCP 2.2, unlike last year’s Roku 4, so it can do HDR and WCG on displays that support those formats. It includes a responsive RF remote with a headphone jack for private listening. But because we’ve run into a handful of bugs while testing and the Premiere+ can’t currently support Google Play or Hulu at UltraHD resolution, we recommend using the apps inside your UltraHD TV if possible.

A pick for iTunes/Apple users and cord cutters

The Apple TV is great for iTunes users and cord cutters. Photo: Chris Heinonen

If you buy a lot of content from the iTunes Store, or if you want the ability to easily stream your music to your receiver or soundbar from your computer, you should choose the new 32 GB Apple TV instead of a Roku Streaming Stick. It supports almost as many apps as the Roku but lets you play back your iTunes content on your TV. In addition, you can stream audio and video from Apple devices and mirror your iDevice or MacBook on your TV through AirPlay. The latest version includes Siri, a new App Store, and the new TV app, which hosts all of your content in one place, accessible via a single sign-on.

The Apple TV is also the only current streaming device that works with Sling, Playstation Vue, and DirecTV for streaming live channels over the Internet. It can also work with an over-the-air (OTA) tuner like the HDHomeRun. But a few important services are missing, most notably Amazon Instant Video (it was announced at Apple’s 2017 WWDC that an Amazon Prime Video app is on the way), Pandora, Spotify, and Vudu.

A pick for playing back local media

The Shield does the best job with local media playback. Photo: Chris Heinonen

If you play back a lot of local media files, the Nvidia Shield offers the best local file and streaming app support. In tests, it played every single file I tried, including UltraHD or 4K content. It can play content from hard drives and flash drives either locally (via USB) or over a network using apps like VLC or from a Plex server. If you have a large library of local content to stream, it outperforms the other streaming devices out there. You can also use a networked TV tuner to watch live TV through the Shield.

The Shield also works well as a streamer with 4K HDR support (and HDMI 2.0 and HDCP 2.2 to go with it) and a large section of services including Netflix, Amazon, YouTube, Google Play, and Vudu. You can also integrate the Shield with a Plex server to make it easier to share media around your house.

This guide may have been updated by The Wirecutter. To see the current recommendation, please go here.

Note from The Wirecutter: When readers choose to buy our independently chosen editorial picks, we may earn affiliate commissions that support our work.

Facebook may spend $1 billion on original video in 2018

We’ve been aware of Facebook’s video ambitions for awhile now. Last month, it replaced the “Video” button with a “Watch” tab, which was designed to be the landing page for Facebook’s push into original TV shows. What we didn’t know, though, was just how serious they were about it: The Wall Street Journal reports that the social media giant is willing to spend as much as $1 billion on its new video push.

The company’s goal is to foster original shows that are able to compete with both traditional broadcasters and online streaming companies such as Netflix and Hulu. Presumably, they want the quality of their content to rival their competitors, hence the large spending. The $1 billion is supposed to take the company through the end of 2018.

Facebook has 2 billion members, and while it does make sense that they want to keep people within their platform (see an episode in the Watch tab and then stay within Facebook to discuss it), it’s not clear how well their focus on video will actually work. Up until now, the site has focused on mining YouTube stars for original video, providing an alternative hosting site for people who have proven they have a following. But now, CEO and founder Mark Zuckerberg appears to be willing to shell out a huge sum of money for original content. Time will tell whether Facebook is successful in this endeavor.

Source: The Wall Street Journal

Google’s Dashboard redesign simplifies your privacy tools

Google announced today that its Dashboard feature is getting a big update including a new look and simpler controls. In a statement, the company said that it asked over 4,000 people last year across 15 countries to give them feedback on privacy and security — information that has helped Google tweak its user controls and Dashboard interface.

One of the main changes to Dashboard is improved functionality on touchscreens, making the feature easier to navigate on any device including smartphones. And getting to the overview of every Google product you use and your activity within those products will now be more straightforward, as will downloading that data. Google says Dashboard will also now be better integrated into its other privacy controls like My Activity, My Account, Privacy Checkup and its “download your data” feature. For the latter, users can already export their data to OneDrive and Dropbox and Google says it will be adding additional options like Box soon.

The redesigned Dashboard will start rolling out everywhere beginning next week.

Prosecutors want Shkreli’s bail revoked due to online harassment

On Thursday, US prosecutors petitioned a court to revoke Martin Shkreli’s $5 million bail due to a remark made on Facebook about Hillary Clinton. Prosecutors said it was evidence he posed a “danger to the community.” On September 4th, Shkreli reportedly wrote on Facebook that he would give $5,000 to anyone who grabbed a strand of Clinton’s hair while she was on her book tour.

In court, prosecutors said, “Shkreli has engaged in an escalating pattern of threats and harassment that warrant his detention pending sentencing.” Shkreli is currently out on bail while he awaits sentencing for an August conviction that found him guilty of defrauding hedge fund investors. A hearing will be held on September 14th on the motion to revoke Shkreli’s bail and send him to prison.

Shkreli has become the face of many things including pharma greed and Wu-Tang Clan fan disgust. But he’s on his way to becoming the face of internet harassment as well. This isn’t the first time Shkreli has come under fire for something he said on social media — his Twitter account was suspended earlier this year after he harassed writer Lauren Duca. While both Twitter and Facebook leave much to be desired when it comes to managing harassment, in Shkreli’s case, Twitter took action while he himself took down the Facebook post in question — though only after the Secret Service got involved and a day later than he said he would.

Shkreli’s lawyer told Reuters, “However inappropriate some of Mr. Shkreli’s postings may have been, we do not believe that he intended harm and do not believe that he poses a danger to the community. We take the matter seriously and intend to address the issue responsibly.”

Source: Reuters

Spotify’s music event picks up where Apple left off

Apple may believe that hosting music festivals is old hat, but don’t tell that to Spotify. It just announced Who We Be, an event based around the popular hip-hop and grime playlist (it has 143,000 subscribers) of the same name. The November 30th gathering takes place at London’s Alexandra Palace, and will have some of the UK’s best-known artists from the scene, including Dizzee Rascal (above), Bugzy Malone and Giggs. If you’re intrigued, tickets go on sale 10AM local time on September 11th.

There’s a good chance that you’ll hear (and possibly see) at least some of the performances on Spotify when all is said and done. If nothing else, this could serve as an experiment: are streaming music playlists big enough to be a draw for live shows? Spotify is clearly relying on the gig’s star power more than anything else, but the playlist theme adds a relatively unique spin.

It’s no doubt coincidental that Spotify is announcing Who We Be right as the Apple Music Festival ends, but it illustrates the contrast between the two companies’ attitudes toward live events. Spotify is clearly betting that large, multi-artist events will draw attention where Apple is shifting its focus toward individual artists’ concerts and tours. It’s too soon to say which strategy is best for boosting listener numbers (provided the strategies help at all), but it’s evident that live music tie-ins aren’t about to go away any time soon.

Via: TechCrunch

Source: Who We Be, Spotify UK (Twitter)