Google has once again taken a huge leap by acquiring Motorola Mobility for $12.5 billion in cash. It is by far the largest investment done by Google and the speed in which it has be carried out shows how serious they are in trying to safe guard their Android OS. It would now mean they directly compete with likes of Apple and Research in Motion directly bringing a new dimension into the mobile world!
This show of intent and execution has show how Google are not just satisfied with just developing the Android mobile OS but they wish to get into the market themselves, considering it has significantly taken over the market-share. As of now through sources Motorola Mobility will act as a separate business under the arm of Google.
The 63% acquisition costing Google about $40 per share has been in the rumour mill considering Google missed out on Nortel which as we know was taken over by a consortium of players which Google claims were playing behest for Microsoft, Apple etc.
Highlighting the “openness” of the Android platform, the mobile operating system will still be available for other manufactures, Google CEO Larry Page said, “Many hardware partners have contributed to Android’s success” and is keen to “work with all of them to deliver outstanding user experiences”.
However, the deal is subject to shareholder and regulatory approval in the United States and under the European Commission which as people speculate would be routine work for Google.
The Main reason for Google to go in for such a huge investment was due to the war waging in courts across the globe involving Google, Apple and Microsoft on the patent front. Google is publicly positioning the deal not as a means to buy its way into the handset market, but as an opportunity to buy Motorola’s portfolio of patents – some 17,000 of them. To some extent this acquisition may solve the problem.
Google thou has some win-win situations arising from the deal,
With the patents issue being the main reason, Google also now has got into its treasure trove set-top box business which was under Motorola Mobility. Considering along with Cisco, Motorola Mobility happen to be the market leaders in various markets. now Google can grow upon this base to improve its foothold!
But many would suggest Google would now face questions from other manufactures about them getting into the market and fighting directly with the likes of HTC and Samsung who have invested and got Android in some sense to it’s present market share! but as of now the company has categorically stated that it intents to keep Android OS as open as it is today!
Google has not only ensured Android remains a key player in the market, But also put immense pressure on Nokia and RIM to come up with better shit!! Microsoft now must some how acquire a player who could help propel its Window Mobile OS platform and rumor has it they may just think of acquiring Nokia or RIM! Wouldn’t that be news.
All i can say is it’s a Win-Win situation for customers due to such immense competition in the market!