Google has usually forsaken a bombshell on the mobile phone industry. It has voiced that it is appropriation Motorola Mobility for $ 12.5 billion in cash, a 61% premium.
In a post patrician ‘Supercharging Android: Google to Acquire Motorola Mobility‘, Google’s co-founder as good as CEO Larry Page has explained because it has motionless to buy Motorola.
Larry Page writes:
In 2008, Motorola gamble large on Android as the solitary handling complement opposite all of the smartphone devices. It was a intelligent gamble as good as we're anxious during the success they've completed so far. We hold that their mobile commercial operation is on an ceiling arena as good as staid for bomb growth.
Motorola is additionally a marketplace personality in the home inclination as good as video solutions business. With the passing from a single to another to Internet Protocol, we have been vehement to work together with Motorola as good as the attention to await the partners as good as concur with them to accelerate creation in this space.
Motorola's sum joining to Android in mobile inclination is a single of most reasons that there is a healthy fit in between the dual companies. Together, we will emanate extraordinary user practice that supercharge the complete Android ecosystem for the great of consumers, partners as good as developers everywhere.
Page has additionally simplified that Android will sojourn an open height with Motorola as a single of the licensee. So alternative Android device manufacturers do not need to be concerned about it immediately, yet it should be a regard in the prolonged term:
This merger will not shift the joining to run Android as an open platform. Motorola will sojourn a licensee of Android as good as Android will sojourn open. We will run Motorola as a apart business. Many hardware partners have contributed to Android's success as good as we demeanour brazen to stability to work with all of them to broach superb user experiences.
Page has additionally highlighted that a single of the categorical reasons for shopping Motorola is to make firm the patent portfolio, so that it can strengthen Android from obvious wars. You might recollect that Google had not long ago claimed that Apple, Microsoft as good as alternative competitors were waging a obvious fight opposite Android. Apple has additionally not long ago sued Motorola for duplicating iPad.
We recently explained how companies together with Microsoft as good as Apple have been banding together in anti-competitive obvious attacks on Android. The U.S. Department of Justice had to meddle in the formula of a single new obvious auction to "protect foe as good as creation in the open source program community" as good as it is now seeking in to the formula of the Nortel auction. Our merger of Motorola will enlarge foe by strengthening Google's obvious portfolio, that will capacitate us to improved strengthen Android from anti-competitive threats from Microsoft, Apple as good as alternative companies.
By shopping Motorola, Google additionally seems to validate Apple’s plan of structure the complete product, that includes hardware as good as software.
It will be engaging to see how the Google will contest with Apple's iOS inclination with the merger of Motorola. We hold foe is regularly great from a patron indicate of perspective as good as the critical that Apple is challenged by stronger rivals similar to Google, that we feel will usually get stronger with the Motorola acquisition.
Update 1:
To get an thought of what the Motorola acquisition means to Google’s patent portfolio, here’s a dash from Motorola Mobility’s website, where it talks about the series of patents it owns associated to assorted attention standards:
As of Jan 2011, Motorola will own we estimate 24,500 patents as good as obvious applications, worldwide. These embody almost all of the patents singular to Mobile Devices as good as Home businesses. Our obvious portfolio in all relates to wireless, audio, video, security, user interface as good as product design, along with applications as good as services associated to the products. Our Mobile Devices commercial operation shred will have we estimate 14,600 postulated patents as good as 6,700 tentative obvious applications, worldwide. Our obvious portfolio includes countless patents associated to assorted attention standards, together with 2G, 3G, 4G, H.264, MPEG-4, 802.11, open mobile fondness (OMA) as good as nearby margin communications (NFC). The Home commercial operation shred will have we estimate 1,900 postulated patents as good as 1,300 tentative obvious applications, worldwide. Further, we hold the portfolio of patents in 4G will on all sides the business good in the arriving record passing from a single to another from 2G to 3G.
Update 2:
Wall Street doesn’t appear to similar to the news, Google’s batch is down 16.42 (-2.91%) during the time of essay this refurbish in pre-market trade as good as as approaching Motorola Mobility is up a whopping $ 14.28 (58.36%) as Google is shopping it for a outrageous premium. It will be engaging to see during what price Google batch closes today, as by afterwards people should get a little time to ready the news. Any guesses?
What do we consider about Google's merger of Motorola? Please share your views in the comments territory below.
[via Official Google blog]
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