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Even if Google puts Hangouts in all the new Android OS releases, and with some upgrading it manually, they'd still be much better off buying either Whatsapp, Viber or Line, to get a solid base immediately of such "SMS alternative app" users.

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If reports are true then they did look into this. There are just too many complications in buying these services. The popularity of these apps are regional, some have deals with carriers and they'll still have to integrate it with their own services which they're attempting to do already with their own offerings.

They'll still be faced with the same problem of enticing users to switch to their service. I think Google took the reasonable path.

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