A wrap-up of Google's acquisition of Motorola Mobility
- 16 August, 2011 14:34
Image credit: Hardware Specs
Following Google’s purchase of Motorola Mobility, CIO Australia has compiled a round up of the latest news on the acquisition.
Google has been pushing hard to work its way into the enterprise, but it remains to be seen whether that effort will be aided by this week's acquisition of Motorola Mobility, analysts say. Google on Monday announced that it had agreed to buy the smartphone manufacturer, which was spun out of Motorola Inc. in January, for $12.5 billion. Since then, industry observers have been mulling over whether the deal can provide a significant boost to Google's ongoing effort to become a formidable enterprise alternative to rival Microsoft.
In a company blog post up early this morning, Google CEO Larry Page lays out the rationale for his software company to pay $US12.5 billion for a leading maker of Android-based smartphones and tablets. Google's purchase of Motorola Mobility will "supercharge the Android ecosystem," Page says in the post, but he offers little detail of how, or why, that will actually happen. Android, the mobile operating system shepherded by Google, and now the world's leading smartphone OS, will continue to be "open," Page says. But, again, he doesn't go into details about what that will mean or ways in which it might change.
Google's $12.5 billion purchase of Motorola Mobility will land it a vast portfolio of patents, but the legal obstacles facing its Android operating system are far from over, legal experts said.
Google's planned acquisition of Motorola Mobility will force the search giant into a whole new set of relationships with mobile operators, which could benefit the carriers but also create tension.
Google's $12.5 billion acquisition of Motorola Mobility is far and away Google's biggest-ever purchase — in fact, it's greater than Google's next 10 biggest acquisitions combined and only its third above a billion dollars.
With most acquisitions, there are winners and losers. Google's buy of Motorola is no different, but in this case, neither of those companies comes out a winner, analysts say. Instead, some believe that Microsoft may get the biggest boost from the deal.
Analysts disagreed today over the impact Google's proposed $12.5 billion acquisition of Motorola Mobility will have on the dynamics between Android and Apple's iOS.
Google has agreed to acquire Motorola Mobility to "supercharge the Android ecosystem" and protect Android against aggressive patent litigation from competitors such as Apple and Microsoft, according to company CEO Larry Page. If the deal meets regulatory approval, the search giant will own one of its closest Android partners for a sale price around $12.5 billion. Google said Android will remain an open platform and that Motorola will be run as a separate business. Motorola has produced many high profile Android devices such as the Motorola Droid, Cliq, Atrix 4G and the recent Motorola Xoom tablet.
Google is apparently sick of being pushed around by patent attorneys from Microsoft and Apple. While announcing his company's decision to buy Motorola Mobility for $12.5 billion today, Google CEO Larry Page said that the deal would help fight off patent suits against Android vendors and would "increase competition by strengthening Google's patent portfolio." Google's Motorola announcement came less than two weeks after the company publicly lashed out at Microsoft, Apple and Oracle for allegedly waging "a hostile, organized campaign against Android ... waged through bogus patents."
Google has entered into an agreement to acquire the mobile phone and tablet maker Motorola Mobility for about $US12.5 billion. Google has offered about $40 per share in cash, a premium of 63 percent over the closing price of Motorola Mobility shares on Friday.
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- Motorola Mobility buy could boost Google's enterprise push
- Google CEO, Larry Page, blogs: Why we're buying Motorola Mobility
- Are Motorola's patents enough to protect Android?
- As a carrier's partner, Google may shine
- Motorola Mobility is by far Google's biggest acquisition ever
- Google's Motorola buy may offer boost to Microsoft
- Analyst: Google eyes Apple's iOS model with $12.5bn Motorola deal
- 5 questions about Google's Motorola buy
- Google lashes out at patent trolls with Motorola buy
- Google buys Motorola Mobility for $US12.5 billion
- Twitter: @CIO_Australia
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