In one of the most-discussed acquisitions in history, Google has taken over Motorola Mobility. The Web search engine and online advertising giant has purchased the leading Android product maker for approximately $12.5 billion. Several analysts have been doubtful of Google’s intention while owning Motorola. They feared that Google will limit its Android platform inside its Mountain View Campus with the Motorola purchase.
But Google CEO Larry Page clearly said that the company had no plan to lay control over its famous Android platform. That means other key Android product makers such as Samsung, HTC and several others can breathe in relief. It looks quite clear that along with the production of its own Android devices in Motorola factories, Google will continue to stay open with its Android OS for other third party technology makers.
Google threw in a huge sum to acquire Motorola. $12.5 billion means a premium of 63 percent of the share value of the Libertyville firm. That is, in other words, Google has taken such a strategic step in taking over Motorola. The company’s upcoming Nexus phones might be prepared by the manufacturer of famous Droid phones. Motorola has been suffering from financial slump for a while.
However, Google has also aimed at Motorola’s reputation as a market leader in video solution businesses and home devices, says Mr. Page, the CEO and co-founder of Google. In other words, Google is on steps to expand its businesses more into home devices and video solutions along with the smart phones and tablets.
More than everything, with the purchase of Motorola, Google has boosted up its patent portfolio. The technology world is largely involved in brewing patent wars, Google and its Android OS has a huge number of patents. Mr. Page, who recently took charge as the chief of the company, added that a strong patent portfolio will help the company stay competitive to the challenges from Microsoft and Apple.
Soon after the news about the Google-Motorola deal, Samsung executives met for a special meeting in Tokyo to discuss the situation. It seems that some company executives have pointed out the influence of software makers over hardware builders. The recent deal of Microsoft with the Finnish phone maker Nokia is another example. Meanwhile, HTC CEO Peter Chou hoped that Google would never choose to be an ‘evil.’ Mr. Chou added that he thought that the Google-Moto deal would only strengthen the Android ecosystem with several more patents.
But Google’s rival Nokia’s CEO Stephen Elop, a former Canadian executive of Microsoft, warned the Android product makers about the Google-Moto agreement. He wanted the Android makers to ‘watch out’ the possible consequence of such deal.
You can check the Press Release here.