Google, the search and advertising web giant has acquired Motorola Mobility Services in August this year for around a whopping amount of $12.5 billion ($40 per share), raising all the eyebrows in the Hardware industry. Google is now eyeing on improving its hardware industry with this venture after it has made its firm feet in the software platform.
The merger will put them in a stronger position in competition to the other Android partners such as HTC, LG and Samsung. Android is gaining popularity exponentially since the day it has made its presence felt and with this partnership, we can expect more enhancements and advancements to the Android platform providing users to choose from carried choices as Motorola’s expertise in hardware would benefit Google in lot many ways.
As Google is in the process of making its grip on hardware business stronger, it is more likely to obtain higher stakes with Googarola (a super entity nickname for Google’s merge with Motorola).
Many feel it is a move to protect Android from anti-competitive threats from big names likes Microsoft and Apple (other companies too). Google has been facing. Though it is a great leap for Google, it will have to pay for the consequences in case they fail together as a joint venture.
Motorola Mobility has remained committed to Android which has led to this merging with each other, almost an epic combination in the mobile industry. Larry Page, the new CEO of Google (also the co-founder of Google) explained in his blog post that Motorola has been a market leader in the home devices, video solutions business, and communication technology apart from being a dominant player in the Android ecosystem for all of its smartphones.
But he also confirmed that Android will continue to remain an open platform as its success is a combined contribution of its various hardware partners.
According to Motorola, the company has approximately 14,600 patents granted and about 6,700 pending patents available. Motorola has gone full Android since November 2009 and it is totally dedicated to the open source platform since then. It is this commitment that made Google merge with this tech giant.
Maybe, Google is trying to repair its slightly laid down reputation, thus trying to get back on its feet again with Motorola.
Google also wants to protect Android through patents. Google did lose to a group of rival companies (buyers) like Apple, Microsoft in a recent auction by the telecommunication company Nortel. Thus it looks like that this is one way Google can protect Android.
Many Android using phone makers will now be competing with them and all major companies’ CEOs were heard welcoming their plans of juncture. Google still needs more patent protection though; it will not stop with just Motorola purchase.
It also intends to rule the mobile industry and we hope this merger will only prove profitable to both the companies.