May 16, 2013

Amazon acquires Liquavista to improve e​-reader functions

With more technologically savvy customers investing in mobile devices, it only makes sense that companies are working hard to improve their products and stay ahead of the competition. Technology mergers and acquisitions continue to have sweeping effects on consumers, and Amazon's latest purchase is no different.

The company announced on Monday that it had acquired Liquavista NV from Samsung Electronics. Liquavista uses electrowetting, a technology that it claims will make mobile displays clearer in all lighting situations. Additionally, it allows for video playback without draining too much power from a device.

An All Things D article speculated that electrowetting technology will likely be implemented into the Kindle, giving customers a stronger e​-reader.

Amazon released a statement that said it is always on the search for technologies that can be incorporated into its products for the long-term. 

"The Liquavista team shares our passion for invention and is creating exciting new technologies with a lot of potential," the company said. "[We're still in our] early days, but we're excited about the possibilities and we look forward to working with Liquavista to develop these displays."

According to GigaOM, electrowetting could also provide the Kindle—particularly the Kindle Fire—with a better display that could make graphic novels and children's books appear more vibrant on screen.

The price of the deal has not yet been released, but earlier reports said that Samsung was looking to sell Liquavista for less than $100 million.

In situations such as this, companies that want to continue to create and develop the best high-tech options for their customers should analyze recent M&A activity in their industry. A technology acquisition is not about one organization making another disappear, but rather, it is about two businesses forming a partnership to benefit consumers.