Google to Buy Motorola Mobility for $12.5B

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
The best way to get Android on more phones? Spend $12.5 billion on a company that makes phones. Taa-Daa!

Google Inc will buy phone hardware maker Motorola Mobility Holdings Inc for $12.5 billion to bolster adoption of its Android mobile software and compete with smartphone rival Apple Inc. In its biggest deal to date, Google said it would pay $40 per share in cash, a 63 percent premium to Motorola Mobility's Friday closing price on the New York Stock Exchange.
Click to expand...
 
Great move by Google IMO. They acquire TONS of mobile patents and can now get in the Mobile hardware. Multiouch screen is nice but is owned by Apple. Let's make the next big thing and own the patent this time around. The only way is to get in the mobile hardware business. You can't expect 3rd parties to take that kind of risk.

I'm not sure how other hardware maker will feel about that but I'm pretty sure they'll still see the value of developing for android, especially since now, Google has the weapons to defend the OS.

I feel like it's a great move and really a turning point in the mobile world. Some apple and MS lawyers will have a lot of reading to do today...
 
I'll be surprised if this gets approval, since they are already under investigation by the FTC over android (among there other business practices in the search area) and why/how do they give it out free. Trying to pull of a deal this big while under investigation is like thumbing there noses at the FTC heh.
 
I think this was more about getting patents then anything. Android is getting sued left and right so the best defense is a good offense.
i.e. counter sue with your new patents.


12.5b is too much for the hardware part of Motorola. But the patents may work to keep apple, microsoft, and others off googles back while android takes over.
 
Acquiring Motorola is bigger than just cellular devices. Motorola is about as wide-spread as Nortel in terms of variety of tech they are in.

I'm pretty okay with this purchase.
 
Prepare to be surprised then. Being sued doesn't eliminate a company from purchasing another. I also doubt the FTC would object, since Google is not buying a cell phone company, rather tech company.


LordCalin said:
I'll be surprised if this gets approval, since they are already under investigation by the FTC over android (among there other business practices in the search area) and why/how do they give it out free. Trying to pull of a deal this big while under investigation is like thumbing there noses at the FTC heh.
Click to expand...
 
LordCalin said:
I'll be surprised if this gets approval, since they are already under investigation by the FTC over android (among there other business practices in the search area) and why/how do they give it out free. Trying to pull of a deal this big while under investigation is like thumbing there noses at the FTC heh.
Click to expand...

Let me check. Apple iPhone, WP7 phones, dumbphones... Maybe i'm mistaken, but this doesn't look like a monopoly case, and there are not many other reasons why should this be rejected. This is not "Intel buying AMD" style of trade, and while Motorola is maybe important player in USA, in the rest of the world they are not as much, and even in USA it would be hard to block this trade.
 
wow, in terms of hardware, motorola is one of the more experienced one, i had a couple of motorola phones, they were really though, i only found the OS side .. well.. lacking, now with android, things will indeed get much much more interesting. still holding to my w7 phone though :), i just like competition, drives progress faster,lol
 
With Apple so big and in the Software and Hardware... I can't see how this is anti-competitive. Otherwise, they'd have to make Apple split the hardware and software part of their company.
 
LordCalin said:
I'll be surprised if this gets approval, since they are already under investigation by the FTC over android (among there other business practices in the search area) and why/how do they give it out free. Trying to pull of a deal this big while under investigation is like thumbing there noses at the FTC heh.
Click to expand...

They are expanding into a new business they weren't in before. That usually does not attract as much attention from the FTC as mergers or acquisitions with/of former competitors do.

There is still plenty of competition in the phone hardware manufacturing world.

I would be surprised if this turns into a regulatory problem on a competition basis.
 
Doesn't Motorla own the patent on cellular technology/implementation? If they do, that means that all hardware manufacturers pay Motorola a royalty, right?
 
AthlonXP said:
Wow they are throwing down now to apple...
Click to expand...

Exactly...I would expect Microsoft to make a move next on someone like Nokia or RIM. Probably Nokia due to the diverse patents and existing relationship.

Cold winds blowing in the direction of Samsung and HTC.
 
This was a patent move to offer some protection to companies that Apple is going after to try and eliminate.
 
Hopefully this means that they stop shipping with freaking Moto-Blur, and stick to Vanilla Android. MotoBlur is the reason I decided against the Atrix (and by extension At&t) and went with the G2x on T-Mobile. Similar hardware, but no stupid MotoBlur.
 
This is a great move on Google's part. They need to start producing some of their "own" hardware to cut out the middleman. That's why our updates get delayed and fragmentation is happening. Also, this would give Google a good number of patents. Which they lack.

And Motorola is just one company. Many other companies make android phones. HTC, Samsung, LG, Sony... And Microsoft has their windows phones and apple has the iPhone. So I can't see how this would be any kind of monopoly. Just a very smart move on Google's part that I believe will benefit everybody.
 
BoogerBomb said:
This was a patent move to offer some protection to companies that Apple is going after to try and eliminate.
Click to expand...

I think this is more of it than anything. Apple's patents have half a leg to stand on which while they may not win will just put turmoil in the market for Android. By buying these patents they can effectively set their defenses in a postion to hold Apple at arms length while they continue to move forward on the Android platform.
 
So will Google make hardware now? And how will this affect it's current partners. I really don't think that Microsoft wants to buy Nokia unless there isn't any other way, Microsoft tends to not to want to compete with its OEM customers.
 
austinwachukwu said:
*goes to go build bomb shelter* Google is taking over the world.
Click to expand...

Not really. This isn't necessarily the greatest buy in the world except for the patents. Google will now be competing against other Android customers and that's going to cause some trouble.
 
Zepher said:
Doesn't Motorla own the patent on cellular technology/implementation? If they do, that means that all hardware manufacturers pay Motorola a royalty, right?
Click to expand...

Not sure, I know Nokia got a ruling in their favour against Apple for hardware patent infringement.
 
When it gets cheap enough will google buy rim and make some kickbutt privately ran backend software?
 
What will this mean for the other companies making Android devices? If Google can produce their own hardware will they dump HTC, Samsung, etc.?
 
DyNamiC. said:
What will this mean for the other companies making Android devices? If Google can produce their own hardware will they dump HTC, Samsung, etc.?
Click to expand...

I bought this up earlier is one of the key issues that this deal brings. Google now has a BIG financial motive to keep Android more to itself and I imagine that HTC and Samsung aren't thrilled with this acquisition and I see this as actually a way to get them both more serious about Windows Phone.
 
my goodness, if it was me, I would have sold the company and live work free with a billion in the bank :D
 
Absolutely nothing will change for other Android manufacturers except that google will be able to defend Android and in conclusion them better against Apple and Microsoft. Google would never dump anyone, that would only hurt Android. :)
Its funny to see on TV how all those anal-ysts on Bloomberg & co think that htc and Samsung will now manufacture Windows phones because of that :D
 
heatlesssun said:
I bought this up earlier is one of the key issues that this deal brings. Google now has a BIG financial motive to keep Android more to itself and I imagine that HTC and Samsung aren't thrilled with this acquisition and I see this as actually a way to get them both more serious about Windows Phone.
Click to expand...

Samsung and HTC actually seem quite happy with this purchase.

"We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem."

- J.K. Shin
President, Samsung, Mobile Communications Division

"I welcome Google‘s commitment to defending Android and its partners."

- Bert Nordberg
President & CEO, Sony Ericsson

"We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem."

- Peter Chou
CEO, HTC Corp.

"We welcome Google‘s commitment to defending Android and its partners."

- Jong-Seok Park, Ph.D
President & CEO, LG Electronics Mobile Communications Company
Click to expand...
 
inuZ said:
Absolutely nothing will change for other Android manufacturers except that google will be able to defend Android and in conclusion them better against Apple and Microsoft. Google would never dump anyone, that would only hurt Android. :)
Its funny to see on TV how all those anal-ysts on Bloomberg & co think that htc and Samsung will now manufacture Windows phones because of that :D
Click to expand...

Again it just can't be denied that Google has a financial motive to keep Android closer to the vest. Not that it will but now it has a DIRECT way to monetize Android. It's going to cause problems with other OEMs, count on it.
 
You must log in or register to reply here.
Back
Top