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Google to buy Motorola Mobility for $12.5B

8/15/2011 04:37 PM EDT
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chanj0
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re: Google to buy Motorola Mobility for $12.5B
chanj0   8/15/2011 5:11:10 PM
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The acquisition seems to be good to Android and Google. What would be the impact to the other Android phone vendors?

goafrit
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re: Google to buy Motorola Mobility for $12.5B
goafrit   8/16/2011 1:51:29 AM
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It is bad because Google is now the judge and plaintiff but it is also good because Android is saved from lawyers

_hm
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re: Google to buy Motorola Mobility for $12.5B
_hm   8/15/2011 5:26:36 PM
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If Goolge/Motorola Mobile compete with LG/Samsung/Sony and others in handset market, why these vendors go for Android? They may like to switch over to Windows or may be other. Anodroid may be called open but now other vendor will have mistrust.

_hm
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re: Google to buy Motorola Mobility for $12.5B
_hm   8/15/2011 5:28:55 PM
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RIM and Nokia may also be this precarious situation. RIM may be target for Apple and Nokia for Microsoft.

Momzo17
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re: Google to buy Motorola Mobility for $12.5B
Momzo17   8/15/2011 6:07:23 PM
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Why would the Google+Motorola partnership be a problem for Phone Makers like Samsung or LG? They've been getting Android from Google for Free. So I don't see why they will quit on Android for Microsoft, knowing that the latter won't offer the OS for free. With RIM's market share on a free fall, they could possibly be targeted by Apple. But I don't think Apple has any interests in acquiring RIM.

KB3001
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re: Google to buy Motorola Mobility for $12.5B
KB3001   8/15/2011 6:37:51 PM
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I do not think Apple has an interest in RIM either. Wrt Android phones, however, you are assuming things will remain as they are which I doubt will be the case. If Google are becoming a mobile phone provider, they would have an unfair competitive advantage over other Android phones' providers, which will make the latter think hard about their commitment to Android as a SW platform of choice. I do not think Google will continue to supply their competitors with the same quality of software they are using in their phones anyway. The whole thing is akin to Microsoft's unfair competitive advantage in Windows applications (Office, VS, Explorer etc.) given they make the Windows OS. What would the regulators do? I think this acquisition would be a step backwards for the community...

p_g
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re: Google to buy Motorola Mobility for $12.5B
p_g   8/15/2011 9:18:42 PM
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The main reason for Android to be as popular as Apple is volume. If they don't provide same quality outside they will loose market edge. I have feeling that having local Hardware group, they will be able to optimize software and hardware more optimally. And same solution can be opted by other manufacturers. I don't thing Google want to compete against other cell phone makers, just trying to optimize and improve their software.

pixies
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re: Google to buy Motorola Mobility for $12.5B
pixies   8/18/2011 8:32:33 PM
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I think Google is aiming for the IP and talents, not the actual brands.

_hm
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re: Google to buy Motorola Mobility for $12.5B
_hm   8/15/2011 7:18:01 PM
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Apple's main interest for RIM will only be its IP/patents. Apple may not be interested in RIM products or manpower. Also, Apple may not like these pool of RIM patents to fall in some otherhand.

nosubject
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re: Google to buy Motorola Mobility for $12.5B
nosubject   8/15/2011 7:36:37 PM
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It is interesting that Google spent such big chunk of money to play defense in this game.

Momzo17
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re: Google to buy Motorola Mobility for $12.5B
Momzo17   8/15/2011 8:14:19 PM
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Was this deal thought of and done overnight? I don't think so. Google and its advisers certainly considered the pros and cons of such a deal, and the prospect of buying Motorola has perhaps been on Larry Page's mind for quite some time. Now Google can use Moto's patent portfolio to play a better defense, but also an excellent offense. Handset makers like Samsung, HTC and LG will redirect their focus towards Microsoft if the latter can provide an OS better than Android. And until I see it, I don't think Microsoft can come up with something that will give Android a run for its money.

terion
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re: Google to buy Motorola Mobility for $12.5B
terion   8/15/2011 8:22:27 PM
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Isn't it sad that $12.5B is spend not for sake of innovation or new business opportunity, but just to defend against swarms of IP lawyers? What is ratio of spendings on engineering vs lawyers in todays world? I guess it is diving and it is not customers who will benefit.

old account Frank Eory
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re: Google to buy Motorola Mobility for $12.5B
old account Frank Eory   8/15/2011 8:22:33 PM
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Google says Android will remain open, but one must wonder how effective that openness will be when Google is able to provide the latest "pure" form of Android on its own hardware platform before releasing it to other Android partners. Google could very well make Android a closed ecosystem, just like Apple has with iOS, if it chose to do so. Another interesting aspect of this deal is that Google will also be acquiring Motorola's broadband and cable TV equipment businesses, which represent nearly 2/3 of the cable TV/broadband infrastructure and cable set-top box market in the U.S. This could have major implications for Google TV.

p_g
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re: Google to buy Motorola Mobility for $12.5B
p_g   8/15/2011 9:20:58 PM
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@Frank, I also think its little to do with cell phone but more for TV business. However the cell phone business is getting highlighted since Motorola is big in it.

old account Frank Eory
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re: Google to buy Motorola Mobility for $12.5B
old account Frank Eory   8/15/2011 11:49:23 PM
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We can only speculate as to how important the broadband cable play was in this decision, but I for one would love to see what Google could do with the stodgy old cable box -- which still, after all these years, has abysmal search capabilities. Rather than making Google TV a second box for over-the-top video, imagine if Google TV simply was THE box...the only box, and powered by Google software.

CamilleK
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re: Google to buy Motorola Mobility for $12.5B
CamilleK   8/16/2011 12:09:46 AM
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@Frank: I just read and noticed I put a similar comment in the other article about Google/Android OEMS... I think we are on to something :-)

KB3001
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re: Google to buy Motorola Mobility for $12.5B
KB3001   8/15/2011 9:35:07 PM
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@terion, it is sad indeed, that's why I said it's a step backwards for the community. I am sure Google have their reasons for buying Motorola (the patent issue is the most convincing) but I personally do not trust Android to be an open platform in a few years time. I might be wrong but my confidence in Android has taken a dent! This is a gift to Microsoft.

altos ace
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re: Google to buy Motorola Mobility for $12.5B
altos ace   8/16/2011 12:37:40 AM
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@terion & @KB3001: Sad indeed, but this looks to be a defensive move by Google. Really, Google has little choice. I think it is a very smart move on the part of Google, in difussing the large number of patent lawsuits against them. 2. The price appears to be 'fair'. Consider Nortel's 6000 patents were sold for $4.5B, or $750K per patent. Google is paying $12.5B/21300 or less than $600K per patent. Now this 21300 includes 6700 in filing. If one wants to be conservative, and assume roughly half of them will be granted, and use 18000 patents equivalent, $12.5B/18000 = $700K. About the same for Nortel. (Things are getting more interesting if you dig deeper into the numbers. Of the 6000 Nortel patents, only 2000 are considered to be in good standing. So how many of those 21300 patents are in good standing?) 3. If we break down the MMI into assets pools, there are three piles: IP, Handsets and Video. Handset lately has been a money losing business, and there is no end in sight. Video is an intriguing component, but to me is an icing on the cake in the grand scheme. 4. Looks to me there is synergy between Google TV and the Youtube with the MMI's video. That is a keeper, I think. However, the handset is a totally different business, with rapid product cycle, razor thin margin (i.e for non-iphone), huge coordinate/management issue in supply chain and sales channel, I think it is better off for Google to spin off or sell it to another company. 5. I am less pessimistic than KB3001 in whether Android will continue to be an open platform. I think it will be. I think Google will make it a level-playing field. Not only that, if it can be done, I think Google will lend its patent shield to other Android licensee such as HTC and Samsung. I am assuming Google is playing the hand right. Of course, it will be even more convincing if Google decides to spin off the handset business.

eewiz
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re: Google to buy Motorola Mobility for $12.5B
eewiz   8/16/2011 1:38:40 AM
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@altos ace In MMI's case there is a functioning business also being sold apart from the patents. So you cant say its a fair price as Nortel sold only patents. Moto will be really hopping for a bidding war. I feel MS will be willing to fork up even 20B to keep Google from getting the patents.

selinz
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re: Google to buy Motorola Mobility for $12.5B
selinz   8/16/2011 3:29:17 PM
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Moto wins, Google wins, and I believe that the consumer wins. Now if Google can use some of their clout to revive some US Moto factories... OK, that's wishful thinking..

VictorT
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re: Google to buy Motorola Mobility for $12.5B
VictorT   8/17/2011 10:12:24 AM
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does it have any impact on arm-intel war?

green_is_now
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re: Google to buy Motorola Mobility for $12.5B
green_is_now   8/17/2011 4:01:36 PM
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Patents are corperate hammers. The one with the most hammers wins.

green_is_now
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re: Google to buy Motorola Mobility for $12.5B
green_is_now   8/17/2011 4:04:17 PM
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assume the patents cost 30% premuim Synergy has to produce another 26% to make this worth it. + the abbility to raise hammers to apples capacitive touch patents (better than gold!)

Dean112
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re: Google to buy Motorola Mobility for $12.5B
Dean112   11/18/2011 3:58:07 PM
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I think McDonalds should Google and we can all get free Big Macs with every phone thats got Android on it. Whos in?!

Dean112
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re: Google to buy Motorola Mobility for $12.5B
Dean112   11/18/2011 3:58:39 PM
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Should buy Google that is**

selinz
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re: Google to buy Motorola Mobility for $12.5B
selinz   8/16/2012 12:11:01 AM
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Google Mkt cap 230B, mickie D's 89B. You got it reversed... Don't think Google would consider McDonalds consistent with their company image.

seaEE
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re: Google to buy Motorola Mobility for $12.5B
seaEE   8/16/2012 1:50:22 AM
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A wireless 3D printer that manufacturers whatever you search for on the McDonalds menu? Hmmm....

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