Could Google's Project Ara Lead To a Google Acquisition of 3D Systems?

[Larry]

You all probably know about Google's Project Ara, which is a project to make a modular smartphone which has interchangable pieces. For example the camera would be in one slot, the ram in another, the memory in another, the processor in another, and so forth. This allows users to upgrade only certain parts of a phone without having to buy a brand new smartphone every couple of years.

The big eye opener for me is that Google will be relying on 3D systems to set up a production line of printers capable of quickly printing out millions, or perhaps even billions of casings for the smartphones.




Such a partnership will likely get Google much more interested in 3D printing as a whole. In my opinion it may even entice Google to buy out 3D Systems, to bring their production in house. If Google really believes that Project Ara will be an amazing success, and they will need to rely on 3D Systems to print billions of casings, it would be smart of them to purchase the company in full right away, as they expect the phones to come to market within a year.

With 3D Systems trading at $47.31, down from a high of $97.28, and a market cap of just $4.88 billion, Google could probably buy the entire company for well under $10 billion. Doing so would make them instantly the leader within the 3D printing industry, an industry which is expected to grow substantially over the coming decade. Here is a video detailing the project a bit more:

[TeddyYan]

I think that 3D Systems is reaching a point now that they would be pretty opposed to any merger or acquisition. They are the largest 3D printing company and they have plenty of revenue. Sure, google would be able to do a lot more with the company, but I don't know if it's something that Google would want to mess with at this point in time. 2 years ago? Maybe? I think Google waited too long on this.

[awerby]

3DS seems to be in more of a buying mood than a selling one.

Andrew Werby
www.computersculpture.com