Google often appears to operate with a chip on its shoulder and seems unsatisfied as it seeks to be everything its chief rival Apple is credited with being. While the company plays second fiddle to nobody, sometimes I believe Google maneuvers with the mindset of a startup by constantly seeking to expand its circle of competence to compete with Apple and now with Facebook.
What is clear is that Google understands what it is dealing with, and perhaps its rivals don't.
Also, the company is positioning itself to be the formidable adversary it needs to be for its own survival. What's more, don't discount that its Nexus 7 tablet and the possibility of creating its own phone via its
ownership could have also inspired this deal.
While Facebook's main challenge (among others) continues to be monetizing mobile, Google seems poised to show Facebook as well as the entire market how it's done.
At the time of publication, the author was long AAPL and held no position in any of the other stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.