# Google to Acquire Motorola Mobility



## naijai (Aug 19, 2006)

Goolge get it own smartphone division.
Insights on how this will play out in the smartphone world ?

http://www.msnbc.msn.com/id/44143115/ns/business-us_business/


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## Cholly (Mar 22, 2004)

This could be great news for Android phone and tablet owners. Google has been struggling (IMHO) with development of Honeycomb and Ice Cream Sandwich, and this may give them a leg up. At the same time, it could pump some life into Xoom and the Motorola Smartphones.


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## Steve (Aug 22, 2006)

It will be interesting to see what Google does with the hardware, because this acquisition was probably more about patent protection, IMHO.

I'm wondering because Google probably won't be able to give Motorola Droid devices a competitive edge without upsetting Samsung, HTC, et al. Otherwise, they might drive them closer to Microsoft and the WP7 platform, because Microsoft won't compete with them on the hardware side.


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## bobnielsen (Jun 29, 2006)

It will be quite interesting to see how this plays out.


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## bobukcat (Dec 20, 2005)

Steve said:


> It will be interesting to see what Google does with the hardware, because this acquisition was probably more about patent protection, IMHO.
> 
> I'm wondering because Google probably won't be able to give Motorola Droid devices a competitive edge without upsetting Samsung, HTC, et al. Otherwise, they might drive them closer to Microsoft and the WP7 platform, because Microsoft won't compete with them on the hardware side.


I agree with most of what you said except I can definitely see Googorola becoming a bit of a skunk-works for the hardware behind Android. It's very possible that Google would then be willing to share what insights it learns with the other Android vendors, something Moto certainly wouldn't have done before (and vice-versa). Or maybe this is just what I hope happens as I've always liked Moto hardware and with a super-tight relationship with the s/w side they could produce some (even more) amazing devices!

On the MSFT / WP7 side, they've already sent a LOT of cash to Nokia to get them to go all-in with WP7 so I think other manufacturers already see them as having a bias toward Nokia. The other manufacturers are also going to see this as a positive in that it helps Google and themselves hold off patent lawsuits.


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## Stuart Sweet (Jun 19, 2006)

I think that Google will use some of the R&D facilities but keep their hands out of the company for the most part.


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## harsh (Jun 15, 2003)

Steve said:


> Otherwise, they might drive them closer to Microsoft and the WP7 platform, because Microsoft won't compete with them on the hardware side.


Microsoft has already made a bid for Nokia.

I can't fathom how folding in with Microsoft and their perennial pariah OS is going to secure a bright future for any consumer electronics company. Even the once mighty Dell is slowly departing the home computer business. Microsoft is genetically incapable of moving fast enough to compete.


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## bobukcat (Dec 20, 2005)

This has to be one of the more surprising (to me at least) tech-company moves in the last 5 years. #1 for me would still be Nokia partnering up with Microsoft, that one still just doesn't even feel right when I type it, but if you had told me last week this was going to happen I would have questioned your state of mind. I hope it works out well for both parties, especially the Moto Mobility employees who have been gone through a lot over the past 2 years, and the consumers who hopefully get better products and drives others to continue to innovate as well.


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## sum_random_dork (Aug 21, 2008)

My how things change remember when Moto was the "cool" phone to have "hello moto....." On one of the SF Bay Area radio stations they were just talking about this purchase and wondering how the two cultures will mesh together...........Google being the free spirit it is letting employees wear whatever they want, bring their families in for dinner at the on campus dinning faclities etc. Whereas Moto is a mid-west company men still wear ties etc. This may become one of the case studies students follow in business school for years to come.


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## klang (Oct 14, 2003)

It seems likely to me at some point Motorola devices are going to get preferential treatment from Android. I'll bet HTC and Samsung etc. are taking another look at their long term plans.


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## Steve (Aug 22, 2006)

klang said:


> It seems likely to me at some point Motorola devices are going to get preferential treatment from Android. I'll bet HTC and Samsung etc. are taking another look at their long term plans.


Especially since, at present, they're reportedly paying somewhere between a $5 to $15 Microsoft "patent tax" for every Android device sold. I'll bet Microsoft might ease up on that tax, if they started shipping more WP7 phones as well. Assuming consumers want to buy WP7 phones, of course.


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## hdtvfan0001 (Jul 28, 2004)

Stuart Sweet said:


> I think that Google will use some of the R&D facilities but keep their hands out of the company for the most part.


Yes...you are likely correct.

It also gives them the ability to gain many patents and do integrated testing with hardware/firmware.

The public statements and corresponding reports from the various Android manufacturers paint an entirely different picture than what a few naysayers are saying..lots of welcome and praise as a strategic and smart move.

http://www.slashgear.com/htc-sony-ericsson-and-lg-praise-googles-17k-motorola-patent-grab-15171695/


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## bobukcat (Dec 20, 2005)

hdtvfan0001 said:


> The public statements and corresponding reports from the various Android manufacturers paint an entirely different picture than what a few naysayers are saying..lots of welcome and praise as a strategic and smart move.
> 
> http://www.slashgear.com/htc-sony-ericsson-and-lg-praise-googles-17k-motorola-patent-grab-15171695/


Public statements being what they are, I agree with you. I also suspect, and he pretty much confirmed it, that Andy Rubin had some very, very frank discussions with the top dogs at those other Android integrators. My guess is that he said something like "We tried to buy the Nortel patents and the price was driven up by the "other" parties so we found this deal sitting here for 12.5B and we also get a hardware manufacturer we can use to help everyone's cause while bringing in a large patent portfolio we will use to help you in battles with MSFT and Apple."

Someone else mentioned that they (HTC, LG, others) may see it as clue that the "Big G" would step in with a cash infusion should they find themselves in trouble down the road.


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## hdtvfan0001 (Jul 28, 2004)

bobukcat said:


> Public statements being what they are, I agree with you. I also suspect, and he pretty much confirmed it, that Andy Rubin had some very, very frank discussions with the top dogs at those other Android integrators. My guess is that he said something like "We tried to buy the Nortel patents and the price was driven up by the "other" parties so we found this deal sitting here for 12.5B and we also get a hardware manufacturer we can use to help everyone's cause while bringing in a large patent portfolio we will use to help you in battles with MSFT and Apple."


Agree that in the end...this really strengthens their position vs the other platform vendor patent challenges that have surfaced in recent times.

Maybe they called it their "Band of Brothers" strategy.


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## Steve (Aug 22, 2006)

bobukcat said:


> My guess is that he said something like "We tried to buy the Nortel patents and the price was driven up by the "other" parties so we found this deal sitting here for 12.5B and we also get a hardware manufacturer we can use to help everyone's cause while bringing in a large patent portfolio we will use to help you in battles with MSFT and Apple."


He may have said that to them.... but what else could he say? It will be interesting to see what Google shareholders have to say if, in fact, Google does leave Motorola Mobility alone, and the new division _*doesn't*_ aggressively market it's own hardware against the competition.

Google shareholders will point to Apple and say "Look. They market their own OS and hardware, and their current value is almost twice Google's."

Think about what a behemoth Google _could_ be if it was as financially successful with Moto/Android as Apple is with iDevice/iOS, added to the huge amount of money Google _*already*_ makes from search advertising. Could be a $500 billion company. :eek2:


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## sum_random_dork (Aug 21, 2008)

Dave Zatz has brought up some interesting questions on his blog. It looks like part of the purchase includes Motorola's set top business, so could this be Google really getting a foothold in the TV market? Only time will really tell but if Google can work their Google TV into the boxes it could be a much bigger purcahse than just the phone business.


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## Steve (Aug 22, 2006)

sum_random_dork said:


> Dave Zatz has brought up some interesting questions on his blog. It looks like part of the purchase includes Motorola's set top business, so could this be Google really getting a foothold in the TV market? Only time will really tell but if Google can work their Google TV into the boxes it could be a much bigger purcahse than just the phone business.


Ya. With TV, phone and tablet, it's a trifecta for them. They also make cable and DSL modems and routers.


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## phrelin (Jan 18, 2007)

From the original news release when Motorola spun off Motorola Mobility:


> Motorola Mobility is comprised of two industry-leading global technology businesses. The Mobile Devices business is an innovative provider of smartphone devices designed to fit every lifestyle. In 2010, the Mobile Devices business launched 23 smartphones globally, including the highly successful family of DROID™ by Motorola devices as well as BRAVO™, DEFY™, FLIPSIDE™, MILESTONE™ and others. The Home business is one of the largest providers of digital set-top boxes and end-to-end video solutions. Motorola Mobility will leverage the capabilities of both the Mobile Devices and Home businesses to deliver innovative smartphones, tablets, set-tops and other converged devices - as well as content delivery and management, and interactive cloud-based services to consumers in the home and on the go.


_That_ is what Google just bought.


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## Steve (Aug 22, 2006)

... because they too have large patent portfolios that are now thought to be more valuable, as a result of the apparent worth of Moto's patents.

http://dealbook.nytimes.com/2011/08/15/the-ripple-effects-of-googles-motorola-deal/


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## Steve (Aug 22, 2006)

Interesting speculation from John McCarthy, a VP and Principal Analyst at Forrester. He wonders if this acquisition would spur Microsoft to acquire Nokia!



> _This said, the deal leaves Google in a very awkward position of being half-pregnant and trying to be a provider of an open source "environment" while at the same time competing with its "customers." It also means that there are four integrated hardware/software offerings: Apple/iOS, HP/WebOS, RIM/QNX, and now Google/Motorola *and potentially a 5th if this deal emboldens Microsoft to pull the trigger on the long-rumored full take over of Nokia.* The Apple story of simplicity and focused innovation at the app level has won out over complexity and innovation at all levels. Unfortunately, the deal extends the overall market fragmentation at a platform level well into 2013 to the frustration of developers. [*more*]_


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## bobukcat (Dec 20, 2005)

Steve said:


> Interesting speculation from John McCarthy, a VP and Principal Analyst at Forrester. He wonders if this acquisition would spur Microsoft to acquire Nokia!


That's the first view I've seen that portrays this as a negative to the Android community or to developers - the later seems like a HUGE stretch to me. There are so many tools to convert HTML5 and Javascript to native apps for Android and iOS that I'm not sure why you'd not just code in those open source languages anyway - well unless you want to code for Windows Mobile (not WP7) or Blackberry I guess. It's not like before this move there was any sign of a single, completely dominate mobile OS any time before 2013 anyway, nor does it signify a major fracture in the Android community. Sure it's possible that all the other Android manufacturers aren't actually happy about it at all but none of the big ones (HTC or Sammy) have said they would be Android exclusive anyway.


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## Steve (Aug 22, 2006)

I assume AMD hopes to sell lots of tablet CPUs, so they have some skin in this game, so to speak. Here's what Patrick Moorhead, an AMD senior VP and strategist, posted on his Google+ page today:


> Google buying Motorola makes sense on all fronts except one. Android can no longer be considered open if Google's own hardware division gets the new OSs first.
> 
> *This is a good thing for Microsoft and maybe even for webOS.* If you are HTC, Samsung, LG, Huawei, Kyocera, etc, why would they bank on an OS that is now directed by a chief competitor.
> 
> Thinking smartphone guys above will be taking a hard look at Mango and webOS.


Hard to disagree with this logic, IMO. I'd also add that a pure Google software experience is probably going to win the day for many non-technical tablet and smartphone buyers trying to decide which "flavor" droid device to choose. It would probably represent the "safest" choice, for those not sure.


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## hdtvfan0001 (Jul 28, 2004)

Steve said:


> I assume AMD hopes to sell lots of tablet CPUs, so they have some skin in this game, so to speak. Here's what Patrick Moorhead, an AMD senior VP and strategist, posted on his Google+ page today:
> *Hard to disagree with this logic*, IMO. I'd also add that a pure Google software experience is probably going to win the day for many non-technical tablet and smartphone buyers trying to decide which "flavor" droid device to choose. It would probably represent the "safest" choice, for those not sure.


I think its very easy to disagree with the logic, as 90% of the reports I've read do just that.

Moorehead's post used to be referred to as a "sour grapes post".

This move is all about the patents they gain, the new platform for accelerated testing and development they will have access to, and the ability to firm up a competitive position against the fruity vendor. There are at least 5 reports alone at SkyReport's website citing these points by the industry analysts.

AMD was left out of the loop, and obviously they are not pleased. The comment about supporting WebOS is particularly revealing and humorous, as many feel that OS on tablets is already DOA based on horrible performance speed on the HP tablet - its the hardware. To properly use WebOS (which itself is a good OS), one unfortunately almost needs a Cray Computer to see real performance (OK, an exaggeration).

As for Windows 8...they are already almost 2 years behind the game, and their UI is right out of the Flintstones era. It'll sell like most anything MS, but unless they give it away...it won't dominate anything already out there.

There is almost always someone who doesn't make it to the dance for change, and AMD seems to be the one in this case.

That said...there is a long and distinguished list of technology leaders who not only are pleased with this development, but support it publicly and financially. Collectively, they are very formidable to continue the momentum Google has already seen with the Android platform. Once V4.x (aka Ice Cream Sandwich) rolls out in a matter of months now...things could get really interesting on the mobile OS front.


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## Steve (Aug 22, 2006)

Good analysis in this morning's New York Times DealBook, IMO. Their take is that this deal was driven by two things, Apple and patents:


> Google made a $12.5 billion bet on Monday that its future - and the future of big Internet companies - lies in mobile computing, and moved aggressively to take on its arch rival Apple in the mobile market. [...]
> 
> The deal [...] would also give Google a valuable war chest of more than 17,000 patents that would help it defend Android from a barrage of patent lawsuits. [...]
> 
> ...


While the boys in Redmond are now trying to decide how to more aggressively court the current Android licensees, it wouldn't surprise me if the boys in Palo Alto (HP) are currently debating if this as an opportunity to license webOS. They probably have a 12 month window to get webOS out in the wild before Windows 8 for tablets starts shipping. Will be fun to watch.

As I mentioned earlier, IMHO this deal gives Google the potential to = Apple + Search. If it plays out as I think it will, in 2-3 years, we could be looking at the next "world's most valuable company". Just my .02.


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## hdtvfan0001 (Jul 28, 2004)

*This is what this is all really about - 1 word - patents:*

_[The rest is PR and positioning]_

_From Marketwatch - _



> Google Inc.'s agreement to purchase Motorola Mobility Inc. for $12.5 billion Monday will give it a slate of 17,500 patents and 7,500 patent applications. That's the latest in a slew of attempts to bulk up on its patent war chest. Google recently purchased 1,000 IBM patents, and made a failed bid for Nortel Networks Corp.'s 4,500-strong patent portfolio.
> 
> Before Monday, Google was also believed to be considering buying InterDigital Inc., a wireless technology company that holds 8,800 patents.
> 
> ...


http://www.marketwatch.com/story/push-for-big-patent-holdings-brews-in-tech-sector-2011-08-16


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## bobukcat (Dec 20, 2005)

Steve said:


> Good analysis in this morning's New York Times DealBook, IMO. Their take is that this deal was driven by two things, Apple and patents:
> 
> While the boys in Redmond are now trying to decide how to more aggressively court the current Android licensees, it wouldn't surprise me if the boys in Palo Alto (HP) are currently debating if this as an opportunity to license webOS. They probably have a 12 month window to get webOS out in the wild before Windows 8 for tablets starts shipping. Will be fun to watch.
> 
> As I mentioned earlier, IMHO this deal gives Google the potential to = Apple + Search. If it plays out as I think it will, in 2-3 years, we could be looking at the next "world's most valuable company". Just my .02.


I agree it probably gives them a reason to pause and consider their options but do you gamble (again) with WP7 or WebOS which so far have gained almost zero traction or do you stay with a winner that is the #1 or #2 mobile OS in the world? Even if Google gives Moto a slight advantage they have a LONG way to go in terms of market share to catch up to either Sammy or HTC - at least in the US. Google has been (by all reports, which is all we really have to go on) a great s/w provider for these device manufacturers EXCEPT for the ability to provide customer support for the OS to individuals. They could leverage the existing customer support infrastructure at Moto and build on it to resolve this issue - this is just one of the many possible positives for all the Android vendors people have come up with.

As for tablets, I don't see people that own iphones or Android smartphones buying a tablet that doesn't have the same OS. You couldn't share applications, you lose that nice integration (soon to be even nicer in iOS) between devices, etc. WebOS is a very, very nice OS but they missed the boat hardware wise with the "Pre" and didn't offer enough other options so it's just about dead now. HP could certainly throw some serious cash at it but that doesn't seem to be their focus at this point.


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## Steve (Aug 22, 2006)

bobukcat said:


> I agree it probably gives them a reason to pause and consider their options but do you gamble (again) with WP7 or WebOS which so far have gained almost zero traction or do you stay with a winner that is the #1 or #2 mobile OS in the world?


Yup. That's what I wonder too. Microsoft could license WP7 for free, like Google, but do consumers want to use it? So far, no. Mango seems to be their last shot at this.

webOS, OTOH, is much more like iOS and Android, from what I've seen. If HP freely licensed it, you never know. It could pick up some market share.


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## hdtvfan0001 (Jul 28, 2004)

bobukcat said:


> As for tablets, I don't see people that own iphones or Android smartphones buying a tablet that doesn't have the same OS. You couldn't share applications, you lose that nice integration (soon to be even nicer in iOS) between devices, etc. WebOS is a very, very nice OS but they missed the boat hardware wise with the "Pre" and didn't offer enough other options so it's just about dead now. HP could certainly throw some serious cash at it but that doesn't seem to be their focus at this point.


That's the entire motivation for Google Android's v4.x (Ice Cream Sandwich) release coming within months. One platform for applications. It will provide the means for smartphones and tablets both to share a large inventory of Android apps. 


Steve said:


> Yup. That's what I wonder too. Microsoft could license WP7 for free, like Google, but do consumers want to use it? So far, no. Mango seems to be their last shot at this.
> 
> webOS, OTOH, is much more like iOS and Android, from what I've seen. If HP freely licensed it, you never know. It could pick up some market share.


Agree.


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## phrelin (Jan 18, 2007)

sum_random_dork said:


> Dave Zatz has brought up some interesting questions on his blog. It looks like part of the purchase includes Motorola's set top business, so could this be Google really getting a foothold in the TV market? Only time will really tell but if Google can work their Google TV into the boxes it could be a much bigger purcahse than just the phone business.


Actually, the Android OS and related hardware is an interesting discussion, but the video side is far more interesting to me.

As I noted on another thread, in December 2010 Motorola Mobility bought Zector, maker of the cloud-based ZumoDrive and ZumoCast services which use a virtual file system to make cloud-stored content accessible as if it were stored on the device itself.

Motorola Mobility in June announced its Televation which like Sling technology will let users stream live TV to IP-enabled devices.

And, of course, Motorola Mobility has a large line of cable IP boxes including some pretty sophisticated DVRs.

Google TV was initially associated with the Logitech Revue and had a relationship with Dish Network. Once the deal is consummated, it appears to me that Google will be competing with Logitech, Echostar, TiVo, Cisco, etc. as a hardware manufacturer which has a whole new set of implications.

And there are direct ties to cable TV companies. Right now I can't think of a direct relationship between Apple and the cable and satellite TV industry.


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## bobukcat (Dec 20, 2005)

phrelin said:


> Actually, the Android OS and related hardware is an interesting discussion, but the video side is far more interesting to me.
> 
> As I noted on another thread, in December 2010 Motorola Mobility bought Zector, maker of the cloud-based ZumoDrive and ZumoCast services which use a virtual file system to make cloud-stored content accessible as if it were stored on the device itself.
> 
> ...


Interesting point, and one that has probably been largely over-looked. Leaked docs of the upcoming Droid Bionic from Moto indicate it will include the free Zumocast application, what I think it most interesting on that side is how Verizon will feel about it competing (in a way) with their on VCast music and Video services. Of course there is already Google Music and Amazon Cloud player for the music side of things but this would seemingly remove the need to upload anything to the cloud to begin with.

If they can find a way to integrate this will set-top boxes and work deals with the cablecos to allow it they could make a compelling story for media sharing.


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## naijai (Aug 19, 2006)

Google says it didn't by Motorola for the patents 
http://www.bgr.com/2011/09/03/googles-schmidt-motorola-buy-is-about-more-than-just-patents/

Then they go shopping for more patents 
http://www.bgr.com/2011/09/15/google-acquires-another-1023-patents-from-ibm/

I miss the good old days of when tech companies just tried to make excellent devices rather than copy one another


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## bobukcat (Dec 20, 2005)

naijai said:


> Google says it didn't by Motorola for the patents
> http://www.bgr.com/2011/09/03/googles-schmidt-motorola-buy-is-about-more-than-just-patents/
> 
> Then they go shopping for more patents
> ...


Or spend more time suing each other instead of developing new products or improving existing ones. The patents Apple was awarded for "design" of the iPhone and iPad are generic to the point of being absurd!!


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