Similar to
the way a delicate strand of pearls too tightly strung on a strand can buckle and appear out of place, Google may have begun to piece together too many services. Each pearl in the analogy aims to
represent another service, from Google Content Network to Nexus One, all strung together by an advertising model (the string.) If the pearls get strung too tightly on the strand, they tend to become
crowded and lose their beauty and potential.
Calling it a final offer, Google announced new terms Thursday for the acquisition of video-compression software company On2 Technologies in
hopes of swaying reluctant shareholders to bite. But the company may have bigger problems to tackle -- linked to the name of its new phone, Nexus One.
The pending On2 acquisition came
under fire in mid-2009 when shareholders became unhappy with Google's $106.5 million offer. On2 postponed shareholder meetings to consider the offer and provide more time to shareholders who might
go for the deal, according to a recent United States Securities and Exchange Commission filing.
While On2's board has approved the sale to Google, the company's shareholders will
have an option to vote on the acquisition at the Feb. 17 meeting. The agreement to amend the merger has been revised by both Google and On2.
"Under the revised terms, each outstanding
share of On2 common stock will receive 0.0010 of a share of Google Class A Common Stock for each share of On2 common stock, as previously announced by On2 and Google, plus an additional $0.15 per
share in cash consideration," according to a statement made public Thursday.
It's clear why Google wants On2's
technology for encoding and decoding video data, since the company earlier this week unveiled Nexus One and a Web site to sell other Android-related devices. The new phone has a video camera with a
flash and options to upload content directly to YouTube.
The Consumer Electronics Association (CEA) estimates wireless handsets will become the primary driver for revenue this year when it
comes to electronics. Smartphones continue to lead the way, generating nearly $17 billion in shipment revenue and more than 52 million unit sales in 2010, according to the CEA, which estimates
smartphones contribute more than 30% of total wireless phone shipments.
Google's new phone may have caught the attention this week of media and consumers, but Wired reports the family
of sci-fi artist Philip K. Dick alleges the search giant lifted the device's name straight from a Dick novel without asking permission.
Dick's estate says the "Nexus"
name originates from the novel "Do Androids Dream of Electric Sheep," which later became "Blade Runner." In that story, a private detective is tracking down a rogue android, a
Nexus 6 model. If the word "android" sounds familiar, you can pretty much guess that this is not the first encounter Google has had with the Dick family.
The family, according to
Wired, claims Google's use of the word presents a trademark violation, and sent the Mountain View, Calif., search giant a letter Wednesday demanding it stop using the Nexus name.
As
Google continues to add services tied to advertising and search, you would think it would pay more attention to trademarks and learn from the issues created by using the name Android -- or, at the
very least, have enough lawyers on hand to secure the rights before using the name.