Google's $12.5B acquisition of Motorola Mobility now official
Google has announced that its $12.5 billion purchase of Motorola Mobility is completed and approved, officially bringing the search giant into the smartphone hardware business.
"I'm excited to announce today that our Motorola Mobility deal has closed," Google Chief Executive Larry Page wrote on the company's official blog on Tuesday. "Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone."
With the takeover complete, Sanjay Jha has resigned as CEO of Motorola, and has been replaced by Dennis Woodside, formerly Google's vice president of Americas Operations. Woodside's succession as Motorola Mobility CEO was first announced in February.
Though Google now officially owns Motorola Mobility, it plans to operate its acquisition as a separate business that will remain a licensee of Android. Google has said that will allow other Android-based smartphone makers, like Samsung and HTC, to compete without giving Motorola an unfair advantage.
The deal was cleared after months of regulatory approval, which concluded last week with a rubber stamp from the Chinese government. China was the final jurisdiction to grant approval after the merger was greenlit by the European Commission and U.S. Department of Justice.
Google first announced last August that it had reached an agreement to buy Motorola Mobility for $12.5 billion. Outsiders have speculated that Google made the purchase to gain ownership of Motorola's extensive mobile patents, though Google officials have contended that the deal was instead for Motorola's products.
Motorola has seen its share of the worldwide mobile device market continue to slide as the smartphone race has increasingly become a showdown between Apple and Samsung. Data released last week by research firm Gartner showed that Motorola's share of mobile device sales slid from 2.1 percent in the first quarter of 2011 to 2 percent in the first quarter of 2012.
Along with Motorola's 17,000 patents, Google will also acquire the company's ongoing legal disputes, including a patent infringement case with Apple. The legal battle between Apple and Motorola already spans across multiple lawsuits in various countries.
Page asserted last August that "anticompetitive" patent litigation from Apple and Microsoft forced Google to buy Motorola Mobility. He argued that the acquisition of Motorola would increase competition by strengthening Google's patent portfolio, protecting the platform from litigation from Microsoft and Apple.
"I'm excited to announce today that our Motorola Mobility deal has closed," Google Chief Executive Larry Page wrote on the company's official blog on Tuesday. "Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone."
With the takeover complete, Sanjay Jha has resigned as CEO of Motorola, and has been replaced by Dennis Woodside, formerly Google's vice president of Americas Operations. Woodside's succession as Motorola Mobility CEO was first announced in February.
Though Google now officially owns Motorola Mobility, it plans to operate its acquisition as a separate business that will remain a licensee of Android. Google has said that will allow other Android-based smartphone makers, like Samsung and HTC, to compete without giving Motorola an unfair advantage.
The deal was cleared after months of regulatory approval, which concluded last week with a rubber stamp from the Chinese government. China was the final jurisdiction to grant approval after the merger was greenlit by the European Commission and U.S. Department of Justice.
Google first announced last August that it had reached an agreement to buy Motorola Mobility for $12.5 billion. Outsiders have speculated that Google made the purchase to gain ownership of Motorola's extensive mobile patents, though Google officials have contended that the deal was instead for Motorola's products.
Motorola has seen its share of the worldwide mobile device market continue to slide as the smartphone race has increasingly become a showdown between Apple and Samsung. Data released last week by research firm Gartner showed that Motorola's share of mobile device sales slid from 2.1 percent in the first quarter of 2011 to 2 percent in the first quarter of 2012.
Along with Motorola's 17,000 patents, Google will also acquire the company's ongoing legal disputes, including a patent infringement case with Apple. The legal battle between Apple and Motorola already spans across multiple lawsuits in various countries.
Page asserted last August that "anticompetitive" patent litigation from Apple and Microsoft forced Google to buy Motorola Mobility. He argued that the acquisition of Motorola would increase competition by strengthening Google's patent portfolio, protecting the platform from litigation from Microsoft and Apple.
Comments
Not to mention Motorola's shareholders who got more than it was worth.
Let the MMI layoffs begin...
Let the OEM Android desertions begin...
I see this as a big opportunity for Microsoft to pick up a large portion of the Android smartphone business...
If Page calls Apple's suits as 'anticompetitive' I wonder what he calls Moto's FRAND violating tactics. Business as usual?
It's common-place in this industry. Just this time it came to a very multi-$B sum and two very large companies. So spare me the evil Google malarkey. And don't give me the "big brother" speech either. Apple gathers just as much personal data that google does.
Quote:
Originally Posted by antkm1
Uh, Apple and many other companies "acquire" companies all the time to gain control of patents.
They don't steal from others first and buy second.
Quote:
And don't give me the "big brother" speech either. Apple gathers just as much personal data that google does.
{citation needed}
[=http://en.wikipedia.org/wiki/History_of_the_graphical_user_interface#Apple_Lisa_and_Macintosh_.28and_later.2C_the_Apple_IIgs.29][/]
[=http://en.wikipedia.org/wiki/Apple_v._Microsoft][/]
[=http://obamapacman.com/2010/03/myth-copyright-theft-apple-stole-gui-from-xerox-parc-alto/][/]
[=http://www.apple.com/privacy/][/]
[=http://online.wsj.com/article/SB10001424052748703983704576277101723453610.html][/][/SPOILER]
Happy reading.
Quote:
Originally Posted by Dick Applebaum
Let the MMI layoffs begin...
Let the OEM Android desertions begin...
I see this as a big opportunity for Microsoft to pick up a large portion of the Android smartphone business...
How will Microsoft do that? Window Phone is a complete and total failure. The OS is fugly and totally unusable not to mention several generations behind both iOS and Android. Scrolling text to the right...LOL.
I also agree that Windows Mobile will benefit from this. I wouldn't say that it's going to completely supplant Android, but it will gain share - mostly from Android. Several factors:
1. Google is now competing with its licensees. The licensees have no guarantees that they will be on a level playing field with Motorola.
2. While Google doesn't charge license fees for Android, Android licensees have to pay Microsoft about $10-15 per handset. That's probably comparable to what they'd pay to license Windows Mobile, so there's no financial disincentive to switching, at least as far as licensing is concerned.
3. In today's litigious environment, lawsuits have to be considered. Microsoft has a history of backing its licensees, Google does not. In fact, Google has gone out of its way to distance itself from any legal matters, which would make licensees nervous.
4. There are a number of legal decisions that have gone against Android. There is a risk that Android would suffer from additional injunctions that could interfere with their business. I'm not aware of any such issues with Windows Mobile.
5. Your characterization of Windows Mobile as a complete and total failure is grossly premature. There are a number of very positive reviews of Windows Mobile. Furthermore, Microsoft has a history of incremental improvements and turning an inadequate product into an adequate one over time.
I think you're going to see that your bluster is way off the mark in about 6 months.
Quote:
Originally Posted by bullhead
How will Microsoft do that? Window Phone is a complete and total failure. The OS is fugly and totally unusable not to mention several generations behind both iOS and Android. Scrolling text to the right...LOL.
That's why I distinctly specified Android smartphone.
Some OEMs are already paying MS to use Android on their smartphones... why not just pay MS to use Windows 8 and, as a [very big] side benefit, not have to compete with your OS provider who also is a smart phone provider.
Quote:
Originally Posted by jragosta
I also agree that Windows Mobile will benefit from this. I wouldn't say that it's going to completely supplant Android, but it will gain share - mostly from Android. Several factors:
1. Google is now competing with its licensees. The licensees have no guarantees that they will be on a level playing field with Motorola.
2. While Google doesn't charge license fees for Android, Android licensees have to pay Microsoft about $10-15 per handset. That's probably comparable to what they'd pay to license Windows Mobile, so there's no financial disincentive to switching, at least as far as licensing is concerned.
3. In today's litigious environment, lawsuits have to be considered. Microsoft has a history of backing its licensees, Google does not. In fact, Google has gone out of its way to distance itself from any legal matters, which would make licensees nervous.
4. There are a number of legal decisions that have gone against Android. There is a risk that Android would suffer from additional injunctions that could interfere with their business. I'm not aware of any such issues with Windows Mobile.
5. Your characterization of Windows Mobile as a complete and total failure is grossly premature. There are a number of very positive reviews of Windows Mobile. Furthermore, Microsoft has a history of incremental improvements and turning an inadequate product into an adequate one over time.
I think you're going to see that your bluster is way off the mark in about 6 months.
Google has stated they will not give motorolla any special treatment. Second google is an Advertising company why would they risk cutting out potential eyes. They were also as part of the deal as speculated by china Supposed to keep android free and open for the next 5 years. So spare me with the Competing with their own OEMS they can't and won't shoot their self in the foot. This acquisition was solely for patents in less then three years motorola mobility will change hands again less patents. More evidence motorola is solely for patents the company does not have a large footprint outside of the United States. It would be moronic for google to purchase a company with the intention of doing vertical integration for android when that company has a comparatively small international footprint.
Quote:
Originally Posted by Dick Applebaum
Let the MMI layoffs begin...
Let the OEM Android desertions begin...
I see this as a big opportunity for Microsoft to pick up a large portion of the Android smartphone business...
You got it.
But before the huge exodus, we'll see a lot of new Google ads trying to convince their vendors that Motorola makes no difference and this is only for patent litigation -- which it MIGHT be, after all.
It seems that being a third party creator of Android phone is going to look as smart as having Samsung make your tablets. Sure -- you guys aren't going to be taking notes while we submit our apps -- are you?
That, of course, assumes that:
1. Google is telling the truth
and
2. The situation doesn't change in the future
Given Google's history, I would be very skeptical of either of those assumptions - particularly since Google has a history of favoring one phone over another when releasing reference phones.
Quote:
Originally Posted by antkm1
Uh, Apple and many other companies "acquire" companies all the time to gain control of patents. Siri, emoji, and countless others. Didn't they purchase exclusive rights to that liquid metal for use in future products? How about that Israeli chip manufacturer? Let's even go back as far as the GUI from Xerox? And they didnt aquire that one
It's common-place in this industry. Just this time it came to a very multi-$B sum and two very large companies. So spare me the evil Google malarkey. And don't give me the "big brother" speech either. Apple gathers just as much personal data that google does.
I think you're missing the point. The acquisition, and what Google has publicly stated about it are pretty much in opposition to everything they stand for and everything they have previously stated about what their intentions are both for open source in general and mobile specifically. Thus the hypocrisy.
Also, over the years, both Google and Apple have set themselves up, and marketed themselves as being, companies that try to "do the right thing" in regards their customers. In Google's case they actually even have that "do no evil" mantra. But while Apple has never been caught violating their core principles at all, Google is in fact operating almost completely at odds with what it previously stated it's core principles were.
Thus "Google is evil now."
Quote:
Originally Posted by jragosta
I also agree that Windows Mobile will benefit from this. I wouldn't say that it's going to completely supplant Android, but it will gain share - mostly from Android. Several factors:
1. Google is now competing with its licensees. The licensees have no guarantees that they will be on a level playing field with Motorola.
2. While Google doesn't charge license fees for Android, Android licensees have to pay Microsoft about $10-15 per handset. That's probably comparable to what they'd pay to license Windows Mobile, so there's no financial disincentive to switching, at least as far as licensing is concerned.
3. In today's litigious environment, lawsuits have to be considered. Microsoft has a history of backing its licensees, Google does not. In fact, Google has gone out of its way to distance itself from any legal matters, which would make licensees nervous.
4. There are a number of legal decisions that have gone against Android. There is a risk that Android would suffer from additional injunctions that could interfere with their business. I'm not aware of any such issues with Windows Mobile.
5. Your characterization of Windows Mobile as a complete and total failure is grossly premature. There are a number of very positive reviews of Windows Mobile. Furthermore, Microsoft has a history of incremental improvements and turning an inadequate product into an adequate one over time.
I think you're going to see that your bluster is way off the mark in about 6 months.
So by your logic, people will buy cloner Windows Phones because Google bought Motorola? Never mind all the vendors which have cloner Windows Phones on the market right now, which are not selling because Windows Phone is garbage. I think you are going to see that your bluster is WAY off the the mark....forever.