Google Snatches Up Motorola Mobility for $12.5 Billion

By , Aug 15, 2011

In a crazy turn of events, several media outlets are reporting this morning that Google has just sealed the deal on the acquisition of Motorola Mobility. The company is essentially Motorola’s Mobile Device Division, which became its own entity earlier this year.

Google now owns that entity, along with over 12,000 cellphone-related patents. If nothing else, the move beefs up the company’s struggling IP (Intellectual Property) portfolio, and will allow them to control all aspects of future Motorola products

The interesting thing here is that Google still licenses its Android software to other manufacturers, like HTC and Samsung. How do you think they feel about the fact that Google now owns one of their largest competitors?

BGR on the Motorola purchase:

“The move is considered in part to be an effort that will better-align Google to compete with Apple’s iPhone, which owned two-thirds of profits among the world’s top-8 smartphone vendors in the second quarter.  A Google-owned hardware arm gives the company complete control over device hardware, software and services, resulting in an end-to-end user experience that is completely under Google’s command.”

I’m curious to see how this deal will affect Android and the rest of the wireless industry. Google maintains that it will continue to run Motorola Mobility as a separate business, but how hands-on will they be in the production of new devices?

Steve Jobs has a famous Alan Kay quote that says, “people who are really serious about software should make their own hardware.” The end-to-end control seems to be a major factor of Apple’s success, and it looks like the competition is just now figuring that out.

What does this deal mean for Android? Should Apple be worried?

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  • Irha

    The +ve’s outweight the -ves for Android. Apple and Microsoft will now have harder time to sue Android manufacturer’s and Android growth should have a bump up. Also, Motorola is going to be run as a separate devision, and will license Android just like others, so perhaps the relationship between Motorola and Android will server as a model for other companies.

    • Emre SUMENGEN

      Hmmm, well, HTC still doesn’t have those patents, you know that right?

      And Apple (and Microsoft) is not suing Google, yet :)

      Rings a bell?

  • Burge

    This could be very good for goolge, because in owning a phone marker they will make android better for there own phone ..just like Apple ..(just won’t be as good as Apple though..)

    • Jon Garrett

      “wont be as good as Apple though”?

      hmm,

      Android has;

      4G phones
      dual core
      3D
      HDMI
      USB
      SD
      Flash
      Drag & Drop (no iTunes)

      • Diyab

        But all the devices containing these techs you just listed sucks.. Android is just trying to release new technology with the suckest devices on earth..

      • JoBerlin

        If Andoid is that great why do you read a blog about iOS devices? And Android has nothing. It’s a bunch of producers who offer different devices. Get your facts straight.

      • anon

        “If Andoid is that great why do you read a blog about iOS devices?”

        Because Apple and Microsoft and Google are all part of the tech insdustry as a whole and if you work in the tech industry in you don’t pick one, you use all of them where needed.

      • User

        JoBerlin, you can’t seriously be that blind…. Anon, says it all!

  • Roberto

    This is what exactly Apple should as right now it’s sitting on a big pile of cash. Guess Google just a little quicker than Apple this time

  • http://www.letstalktablets.com Darryl

    This is a very big and bold move from Google, one which I believe will work in their favor in a HUGE way. Hey, if you have the dough why not, right?

  • north

    don’t forget Google Wallet rolling out with NFC chips. Probably a big reason they want Moto and Moto Patents (aside from owning more market share of course)

    That’s the next big big thing.

    although Bluetooth 4.0 and Apple might just squash whatever Google and Android come up with.

  • JoBerlin

    Smart move! The ones who should be concerned are the other manufacturers of android devices. Google will fit Android to run better on their own devices now.
    On the other hand they are a worthy competitor for Apple. Hopefully this will result in better devices and more freedom to customise in iOS.

    • Emre SUMENGEN

      Agree that this will probably be good for iOS users :)

  • Cam

    @JoBerlin,,,, You’re just an idiot….

    • Emre SUMENGEN

      And you are? (Leaving a message that contains only THAT???)