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Google (GOOGL) Acquires Messaging Startup Jibe Mobile

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Search giant Google Inc.GOOGL has acquired a mobile messaging startup Jibe Mobile in a bid to incorporate Rich Communications Services (RCS) into Android. The terms of the deal were kept under wraps.

The RCS system is turning out to be the new standard for SMS messages. It is a GSM Association (GSMA)-backed technology that leverages an IP Multimedia Subsystem (IMS) network to build features that offer enhanced delivery of communication beyond traditional SMS and MMS and are compatible with today's data-centric networks and phones. T-Mobile is the first carrier in the U.S. to completely use this technology.

It enables instant messaging or chat, live video and file sharing. Users need to have a device and carrier that supports the system along with a compatible app. It can be used to send both individual and group text messages, share location, share screen between devices, and also show contact presence.

With RCS, users can see when the messages are delivered and read and also when the recipient types a reply. These are the points of debate with traditional text messaging. Also, it enables exchange of high resolution photos and videos up to 10MB.

Jibe, founded in 2006, develops RCS services and powers 26 carriers including Deutsche Telekom AG, Orange FTE and Sprint Corp. S using an RCS-powered app to deploy the technology. Following its integration with Google, Jibe will continue helping carriers deploy RCS to users.

Therefore, Google wants to improve the messaging experience on Android by bringing RCS to users worldwide and speeding up its adoption. Hence the acquisition will bolster its efforts to do so.

Google has a Zacks Rank #2 (Buy). Another stock in the technology space is Stamps.com Inc. STMP , sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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