Google's deal to purchase Motorola Mobility puts the company that makes the Android operating system in the business of making smartphones. The search and online advertising company is buying the company for approximately $12.5 billion (or $40 per share), in cash. This is a big step for Google as it will now become a full fledged cell phone manufacturer. This deal can be likened to if Microsoft were to start making PCs.
Acquiring Motorola Mobility is not only about making phones but about patents for Google, as it helps the company to fend off legal challenges from Apple and Microsoft related to Android. The purchase provides Google with legal ammunition, the tech giant can now bring in it's 17,000 patents and protect it's ecosystem a little better. This should provide Google with a little more room to punch harder in the mobile wars going forward. With a worldwide market of 5 billion smartphones there is plenty at stake, it's a cage match out in the smartphone market right now.
Where as Apple's IOS operating system is used exclusively with the iPhone, Google allows many smartphone makers to use Android, this practice has made it the number one operating system in the world. But the purchase of Motorola Mobility could complicate that arrangement. The major Android cell phone manufacturers such as HTC and Samsung have not commented on the deal but several months of scrutiny awaits before the deal is finalized.
Monday, August 15, 2011
Google To Buy Motorola Mobility
1 comments:
The 800lb gorillas are slugging it out in the mobile world jockeying for position. Apple has a sharp product, market share and appeal. Was this strictly a legal maneuver or are they following the path of Apple trying to beat them at their own game? The mobile marketing is the fastest growing segment and it appears the giants are pushing and elbowing there way through. Microsoft with all their talent seems to keep following behind.
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