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Google Acquires Motorola Mobility for $12.5 Billion
- by Gavin O'Malley , Staff Writer @mp_gavin, August 15, 2011
By far its biggest acquisition to date, Google's agreement to buy Motorola Mobility for $12.5 billion has set off a wave of speculation and conspiracy theories.
"In a nutshell, [Google CEO Larry] Page is betting on mobility as the future of computing," writes ZDNet.
"Either Google really wants to get into the Android manufacturing business -- putting it into direct competition with Apple ... Or Google really wants the 17,000 patents and 7,000 patents pending that Motorola has assembled over the years," Fortune writes.
"Across the world, there are Android-based original equipment managers that feel like they just got punched in the stomach," suggests ReadWriteWeb. "No matter how benevolent the companies make it sound, [Google's entry into the hardware supply chain] is a huge wave that will have ripple affects across the entire mobile ecosystem."
"No matter how Google spins this [deal], it really flies in the face of the Open Handset Alliance, currently composed of 84 technology companies," writes GigaOm. "The OHA implies that partners will work together to create a better mobile experience, even though they actually do compete every day."
Either way, "This is a game-changer in the mobile world, as Google moves down the stack, and is no longer just an operating system provider," writes Business Insider.
"Nobody saw this coming," Fast Company writes.
Foreseen or not, however, "It is certain to attract significant antitrust scrutiny," insists The New York Times, adding, "The Federal Trade Commission is already investigating Google's dominance in several areas of its business."
Yet, "Google's aims to fix multiple lingering wireless issues [with the agreement] is just crazy enough to work," ZDNet adds, before laying out six reasons why the would-be deal makes sense.
Gavin O'Malley edits MediaPost's Mobile Marketing Daily and MoBlog column. Follow him: @mp_gavin. You can reach Gavin at gavin@mediapost.com.
Android and Chrome are mobile and web centric platforms to allow mfg and software developers to compete at a much lower cost than afforded by those working with Microsoft, RIM and Apple on mobile and Microsoft/Oracle on business services, especially in the cloud.
Motorola patent portfolio is just a small part of the picture as the acquisition is way to expensive for patent protection only.
Keep in mind the grand charter of Google is to provide information everywhere and low cost or free tools to manage this data.
Part of this strategy is to enhance the dump pipe carrier model to offer connectivity as well as PaaS and Saas platforms.
Google could acquire Lambda Rail fibre network for metro connectivity across the US and then acquire Sprint for the 4G/LTE services.
Combined you could have a full VOIP solution for connectivity to the last mile and mobile that would force Verizon and AT&T to deleverage their pricing models for data services and WiFi connectivity anywhere.
Skype is already doig this with video calls that bypass the carrier through data services, not reliant just on WiFi access. Google is positioned to go way beyond this.
Eventually Google can become a network carrier for business services, especially in collaboration - their sweet spot. That's where Google+ is moving to and it will force software vendors as well as carriers to redefine their business model.
Google is smart and Motorola is just one piece of the puzzle. Handset mfgs should not care unless Google can sell phones from partners without the stupid 2 year contracts that mobile carriers force on subscribers.
After all, the rest of the world decouples owning a phone from subscribing to a service. Rock on Google!
17,000 plus 7,000 patent pendings help Google choke budding business to death quicker than thay do now. And that's just one reason to block this buy.
A lot of folks could see the possibility - when Samsung's Tab 10.1 was blocked from sale in Europe due to intellectual property problems it was clear Google had to do something if it was going to keep promoting Android. Only this something, and acquisition, could be a huge mistake - according to Forbes http://onforb.es/nDGxlY