Google buys Motorola Mobility (1 Viewer)

[Sam Posten]

Hell of a way to build a house brand. "Open!!!!" http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html http://allthingsd.com/20110815/gulp-google-buying-motorola-mobility-for-12-5-billion/ http://www.businessinsider.com/breaking-google-buying-motorola-mobility-for-125-billion-2011-8?op=1 http://www.zdnet.com/blog/microsoft/googles-motorola-acquisition-microsoft-patent-case-takes-a-new-turn/10325 http://www.zdnet.com/blog/btl/googles-125-billion-motorola-mobility-bet-6-reasons-why-it-makes-sense/54987

 

[Sam Posten]

I usually hate BI's take on things but this is spot on: http://www.businessinsider.com/google-motorola-deal-2011-8?op=1 19000 new employees. 19000 new googlers. They had really best keep this totally separate Bus unit otherwise this is suicide.

 

[RobertR]

Android had 43.3% of all smartphone sales in the second quarter: http://www.bloomberg.com/news/2011-08-15/google-agrees-to-acquisition-of-motorola-mobility-for-about-12-5-billion.html

 

[mattCR]

It's great news for Google.. and oddly, if anyone else benefits, it's Microsoft. This takes the back and forth over licensing fees straight home, but it also is likely to make other vendors (Samsung, HTC, LG) listen.


While Google, Apple & RIM own the marketplace, for the first time, WindowsMobile (WP7) gained marketspace.. and a fair bit in the last quarter, going from a falling position down to 4.8% of shipments up to 9% of sell through. That's still nothing in comparison to say, 28% Apple, etc. but it's a serious reversal of trends.


The reason why I mention them though is more obvious: Google as a platform was the one that pitched across multiple manufacturers as a development platform. Them snagging up Motorola leaves only MS as someone not branding their own hardware. For companies that make the hardware like LG, Samsung, HTC, this might be felt like a body blow against their position on Android. And them using virtually identical hardware for WP7 is not a big issue.


We'll wait and see. Motorola simply isn't as big as it would seem; it's not as ubiquitous as when the Motorola Razr dominated the market. Times have changed. The question is will Google's hardware acquisition help their development and profitability more then it will hurt their position with 3rd party hardware vendors.


And that's going to be interesting.


Android's failure was fragmentation. WP7 has basically avoided that by having the software as truly universal and forcing all updates to be managed by them so they are rolled out at the same time, avoiding the mix-match problem of Android. Google felt as though they had to pull in Android's setup. I am very interested in how this turns out, because either a model that allows for a software only vendor can work (but it isn't google) or it can't.


I think Google's method gets harder. I think them acquiring Motorola means you're more likely to see fragmentation then less. But who knows.

 

[Sam Posten]

I haven't had a chance to try out WP7 but I hear good things. I still have yet to even see one in the wild.

 

[Sam Posten]

Good insight: http://www.appleoutsider.com/2011/08/15/mot/

 

[Sam Posten]

Uh huh: http://gigaom.com/2011/08/15/guess-who-else-wanted-to-buy-motorola/ Yeah, no: http://www.cultofmac.com/why-googles-purchase-of-motorola-is-a-white-flag-of-surrender-and-how-apple-won-the-future-of-tech-opinion/108899 BAD fanboy, BAD!

 

[RobertR]

No way do I buy the idea that this is somehow good for Microsoft. Since Android will continue to be an open system, I don't see how it's bad for Android overall, either.

 

[Sam Posten]

Very weird article: http://www.suntimes.com/technology/7083198-478/google-buying-motorola-mobility-should-build-a-better-android.html

 

[mattCR]

Originally Posted by Sam Posten

Yeah, no:
http://www.cultofmac.com/why-googles-purchase-of-motorola-is-a-white-flag-of-surrender-and-how-apple-won-the-future-of-tech-opinion/108899

BAD fanboy, BAD!

This is maybe the most preposterous analysis I've read.

 

[dmiller68]

As a person that has worked for a wireless hardware company (Nokia). I believe it was about time that the consolidation starts. I believe this was more about patents and less about hardware. in fact I would bet that 2 years from now the manufacturing piece is sold to LG or Samsung. In the end Motorola was going to die much like Nokia will. Neither MS, Google or Apple wants the patents in the wild. Too many patent trolls out there that sue for the sake of suing (I just got done with a deposition in a patent troll case). I know that MS and Google just bought up 5000-6000 patents just so they wouldn't go to the trolls. I do believe that this will force MS to buyout either RIM or Nokia. Would guess Nokia (who also has 1000's of patents) just because they are in bed already. If this happens I would bet Samsung would scoop up the other person. This would leave LG who will be a maker of phones until it doesn't make business since anymore. Just my little prediction.

 

[Sam Posten]

Actually it's 25,000 patents! But... This cracked me up yesterday:

asymco Horace Dediu Google just spent over $12 billion to prop up a software stack that they give away. Now that's what I call business model innovation.

 

[DaveF]

Originally Posted by mattCR

It's great news for Google.. .

I'm curious to see how it works out, and if it is good for Google. 25k patents are great for Google. But a whole new business unit completely outside their experience? Their Android VP surprised by the gift of -- and not part of strategic planning of buying -- a Android handset manufacturing wing? "Channel conflict" with their hardware partners? The not-unusual problems of major mergers not going well for both sides? $12.5B spent on a give-away OS and that doesn't seem to generate anywhere near that revenue in subsequent advertising?


It's going to be interesting.

 

[mattCR]

Yeah, I think as time has gone on, the more I think the big winner in this is really Microsoft. MS will have a much easier time finding licensing partners, and LP will be a lot more interested in MS.. Since MS updates are universal (all handsets same OS level, or could be easily) it becomes about the hardware and sell through options. Meanwhile, with Google owning Motorola, and a fragmented base, manufacturers have to worry that Motorola devices are going to have a significant heads up advantage.