No, it's not April 1. Though many of you probably looked twice at your RSS reader or emails this morning, questioning whether you were reading that headline correctly, Google is indeed acquiring Motorola Mobility and will shell out $12.5 billion for the honor.
It might seem random, but Motorola has focused solely on Android since 2008, and the company's patent portfolio is quite attractive to the patent-starved Google. If the deal is approved by the appropriate regulatory authorities, Google argues that it will be in a better position to protect its lucrative Android brand. That's great, but what's so great about patents and what does this mean for you? Are we headed for a future where only Motorola will produce Android devices? See below for all the answers.
So should we expect to see the rise of Moogle or Googorola?
Not just yet. Google insisted that Motorola will remain a separate company.
Why does Google want to buy Motorola?
Google chief Larry Page talked about buying Motorola in order to "supercharge the Android ecosystem," and what really sweetened the deal was Motorola's expansive patent portfolio.
Patents? That's kind of a boring reason.
Boring, but lucrative. Anyone keeping an eye on the tech press recently has seen no shortage of patent-related lawsuits, many from the top tech firms in the game: Samsung vs. Apple, Google vs. Oracle, Motorola vs. Apple, Microsoft vs. Android producers, just to name a few. If you latch on to just the right patent, you can make a killing on licenses alone. A recent report said Microsoft has made more on licenses for HTC Android devices than it has on its own Windows Phone platform.
So it's all about money?
And protecting the brand. Earlier this month, Google accused rivals like Apple and Microsoft of collectively purchasing patents in order to thwart the growth of Android. If companies like Apple and Microsoft hold the most valuable wireless patents, Google is vulnerable to patent-related lawsuits. Buying Motorola and its patent arsenal "enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies," Google's Page said today.
But Google is pretty big; it has to have a lot of patents, right?
Not exactly. It might be big, but relatively speaking, it's still a youngster in the tech scene at 13 years old. Patent proceedings can drag on for years, so Google hasn't had much time to build up its own portfolio. And in recent months, it lost bids to buy patents from Nortel and Novell.
Apple was one of the companies to buy into the Nortel and Novell patents. Is this setting the stage for an epic Apple vs. Google battle?
It's the stuff that tech headlines are made of, of course, but we'll have to wait and see. Google has not minced words in criticizing Apple (and Microsoft) for its approach in acquiring patents ("Microsoft and Apple have always been at each other’s throats, so when they get into bed together you have to start wondering what's going on," Google's David Drummond quipped recently), but can Google battle the Apple starpower? "We believe this deal speaks to the concerns Google had in competing with Apple in the long run, however, Google will now have access to both the software and hardware piece to the puzzle," Ticonderoga's Securities analyst Brian White said in a Monday note to investors.
Fair enough. But does this mean we'll only be able to get Android-based phones from Motorola?
Google insisted that Android will remain open, meaning that Motorola will not be the only Android dealer in town. "Many hardware partners have contributed to Android's success and we look forward to continuing to work with all of them to deliver outstanding user experiences," Page wrote.
OK, but how do other Android partners, like HTC and Samsung, feel about that?
According to Google's Android chief, Andy Rubin, partners like Samsung, LG, Sony Ericsson, and HTC were "very enthusiastic" about the deal. Statements from those providers released by Google, however, were very terse and basically said that they "welcome" Google's effort to protect Android. HTC later issued a longer statement that said "We are supportive of Google's acquisition of Motorola Mobility as this is a positive development to the Android ecosystem, which we believe is beneficial to HTC's promotion of Android phones. The partnership between HTC and Google remains strong and will not be affected by this acquisition."
So they're freaking out, right?
Probably, though no one's really going to come out and say it. Analysts and tech journalists alike were certain that handset makers were not exactly greeting this news with open arms.
Could they just dump Android?
Anything is possible, but Android has been very good to a number of these companies. Samsung in particular had a huge year thanks to the success of its Android-based Galaxy S line of smartphones. The handset maker shipped 17.3 million devices, a 380.6 percent change from the 3.6 million smartphones it shipped in the second quarter of 2010, according to IDC, which was the largest year-over-year growth of any of the world's top-five smartphone vendors. As Gartner's Carolina Milanesi pointed out, there's "not much they can do when their smartphones sales are so dependent" on Android.
What about Windows Phone 7?
Ironically, it was Motorola's Sanjay Jha who was publicly entertaining the idea of a Windows Phone 7-based Motorola device recently. "I would have to consider whether defocusing from Android to Windows will be the right thing for us to do, but if the capabilities on Windows are such that that is the right thing for us, I think we will consider it," Jha said. That's probably less likely now, but Microsoft isn't exactly hurting for support from a major phone maker. Earlier this year, it signed a deal with Nokia, and the Finland-based company is set to unveil its first Windows Phone device by year's end. Windows Phones also aren't exactly flying off the shelves just yet, so Android likely remains a more lucrative option for the likes of HTC and Samsung. But as this morning's news proves, don't rule anything out.
Does Microsoft have anything to say?
Initially, Microsoft had no comment on the deal, but later in the day, Andy Lees, president of the Windows Phone division, said in a statement that "investing in a broad and truly open mobile ecosystem is important for the industry and consumers alike, and Windows Phone is now the only platform that does so with equal opportunity for all partners."
What about the wireless carriers? Does this impact them, too?
The big four are also keeping a lid on it. Verizon, Sprint, and AT&T all declined to comment and T-Mobile did not immediately have a comment to share.
Would this somehow involve Google TV?
Indeed. Besides phones, Motorola Mobility also develops set-top boxes and DVRs. With Motorola in its corner, there's a good chance we might see Google TV appear in cable boxes. In the announcement, Larry Page said he wants to accelerate innovation in the home devices and video solutions business, and pledged to work with the cable and telecom industries to get that done.
Source:http://www.pcmag.com/article2/0,2817,2391140,00.asp?kc=PCRSS05039TX1K0000762
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