These days, it seems anything can spark the stock market alight, and send stock prices soaring higher than usual. Of course, such is the nature of a twitchy and uncertain global economy. Still, some rumors that spark these spikes in stock prices are a little more wild than others and a fantastic rumor just did the rounds in South Korea, sending the stock of one South Korean tech giant soaring by as much as 14%. Someone, somewhere thought that Google would be purchasing a 35% stake in LG. The South Korean giant has now officially come forward and denied the rumor as nothing more than your average round of speculation.
The rumor goes that Google were to purchase 35% of LG for a cool 2.5 Trillion Won, which is roughly $2.2 Billion or so. While a stake of 35% wouldn’t ensure Google a majority, and therefore nothing close to controlling the company, it would of course give the search giant some considerable sway with the company’s direction, and no doubt lead to closer workings with Google and LG on future products. Even so, a 35% stake in LG would cause a shockwave throughout the Android ecosystem. If partners like Samsung and HTC were unhappy when Google bought fledgling Motorola years ago, imagine how they’d feel getting nice and cosy with LG? A rising star in the Android world and a competitive consumer electronics company the world over. ‘Samsung’ is perhaps the one word that would ensure such a deal wouldn’t take place. While Google might not enjoy how Samsung market their phones – with very little mention of Google or Android at all – or do with their software, the company is the number one reason Android is as big as it is today. No matter how good LG is, or how well they’re doing right now, Google wouldn’t risk upsetting one of their biggest and most influential partners in the mobile space.
LG and Google have enjoyed a fairly close relationship over the years as it is, with the Nexus 4, the Nexus 5 and of course the original G Watch all powered by LG, it’s clear the two have a working relationship. There seems to be little reason for Google to purchase a large stake in LG, or any mobile partner for that matter, they’ve ‘been there and done that‘ with Motorola, and even though LG is a very different beast it’s a head scratcher as to why Google would need to invest quite so heavily in a faithful partner.