Today Google buys Motorola Mobility for $12.5 billion ($40.00 per share in cash).
Google co-founder and CEO Larry Page writes that Google has acquired Motorola not only because of its strength in Android smartphones and devices, but also for being a “market leader in the home devices and video solutions business.” He also states that .” Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”
Google a search and online advertising company has entered into the hardware market and also increased its patent portfolio by acquiring Motorola Mobility. Increasing its patent portfolio will “enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies”. Google now has a competitive advantage in the mobile computing market.
“Our Mobile Devices business segment will have approximately 14,600 granted patents and 6,700 pending patent applications, worldwide. Our patent portfolio includes numerous patents related to various industry standards, including 2G, 3G, 4G, H.264, MPEG-4, 802.11, open mobile alliance (OMA) and near field communications (NFC).” (http://www.motorola.com/Consumers/US-EN/About_Motorola/Technology/Approach).
Google TV has been a failure and this acquisition could be what Google needs to get back on track. Google CEO Larry Page said Motorola is a “market leader in home devices and video solutions….We’re really excited to work together with them and the industry to really accelerate innovation.” This is not a clear answer to when asked if Motorola Mobility will be used to successfully push TV. One things for sure is that Motorola Mobility will give Google TV a potential distribution strategy.
Want to know more about Google TV? “Your TV is Smarter Than You Are, Ask Google”
Keeping a close eye on the moves of Google-Motorola throughout the next 12 months. Should be interesting!
