Google surprised many last August when it purchased Motorola Mobility, but a few days after China approved the deal, today the deal has been officially completed. Google acquired Motorola Mobility for $40.00 per share in cash, but has still yet to announce its future plans for the business.
The Strategic Importance of Motorola’s Patents
It’s been rumored that Google may have been simply interested in the patents held by Motorola. Motorola Mobility holds over 17,000 patents, with an additional 7,500 patents pending. These patents cover a wide range of technologies, including wireless communications, 3G, 4G, and even some aspects of smartphone design. By acquiring these patents, Google significantly bolsters its intellectual property portfolio, providing a robust defense against potential litigation from competitors like Apple and Microsoft. This strategic move could help Google protect its Android operating system from patent infringement lawsuits, which have become increasingly common in the tech industry.
However, the company did explain in the press release today:
“The acquisition will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.”
Future Prospects and Leadership Changes
Sanjay Jha, who revived Motorola’s Mobile Devices business and led the company through the acquisition, has stepped down as CEO. However, he will continue to work with Google to help ensure a smooth transition over the coming months, say Google. Dennis Woodside, a longtime Google executive, has been appointed as the new CEO of Motorola Mobility. Woodside has been with Google for nearly a decade and has held various leadership roles, including overseeing Google’s sales and operations in the Americas.
The future of Motorola Mobility under Google’s ownership remains a topic of much speculation. Some industry analysts believe that Google may use Motorola to produce its own line of smartphones and tablets, similar to how Apple designs and manufactures its own hardware. This could allow Google to have greater control over the integration of hardware and software, potentially leading to more innovative and seamless user experiences.
On the other hand, Google has reiterated its commitment to keeping Android an open platform. This means that other smartphone manufacturers, such as Samsung, HTC, and LG, will continue to have access to the Android operating system. By running Motorola Mobility as a separate business, Google aims to avoid any conflicts of interest and maintain healthy competition within the Android ecosystem.
Moreover, the acquisition could also lead to advancements in other areas of technology. Motorola has a strong presence in the home entertainment and telecommunications markets, with products like set-top boxes and modems. Google’s expertise in software and services, combined with Motorola’s hardware capabilities, could result in new and innovative products for consumers.
In conclusion, while the full implications of Google’s acquisition of Motorola Mobility are yet to be seen, the deal has the potential to significantly impact the mobile computing landscape. By acquiring Motorola’s extensive patent portfolio, Google strengthens its position in the tech industry and enhances its ability to innovate. The leadership changes and future prospects for Motorola Mobility will be closely watched by industry observers and consumers alike.
Source: BGR
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