Why Google Should Buy Motorola?
Ok, I will start by saying that this is not based in reality but is an idea that came to me after reading this article discussing the patent battles that Android and HTC are fighting right now with Microsoft and another article (which I can no longer locate but it exists, I promise) that indicated that Motorola may be looking to off-load its mobile device division in the near future. Seeing how Microsoft and Apple are apparently trying to choke Android’s supply chain with these patents lawsuits Google now needs to go on the offensive to protect its heavy investment in Android. Then I put two and two together and came up with the bright, if not brilliant, idea that Google should purchase Motorola’s Mobile Division to help offset any more potential threats.
Motorola has been in the Cellular phone business longer than you can probably remember and has a book of patents that is most likely unmatched in this particular field. In fact, this one paragraph from the article above, regarding Motorola’s patents, really made this idea clear to me:
Companies like Motorola, with a legacy of mobile phone development, have a far better defensive position, said Ken Dulaney, an analyst with Gartner. Any company that tried to sue Motorola over mobile patent issues would likely find itself ripe for a countersuit, given that Motorola could pick through its array of patents and find technology that arguably infringes on its holdings.
Motorola has already decided to put all of its chips (for smartphones at least) in Android’s corner and have helped boost both Google’s mobile operating system and their own fortunes, as the recent earnings suggest. But even with increased sales, Motorola is still forecasting that it will not make a profit with its Mobile Division until the fourth quarter of this year and that uncertainty could lead executives to sell if the right offer came in.
Google, on the other hand, is not struggling but the recent lawsuits over Android have put a bit of a damper on their mobile growth even though the lawsuits are not directly aimed at Google. With HTC agreeing to pay royalties to Microsoft to produce Android smartphones the cost of using Google’s baby has gone up considerably. Microsoft and HTC have a long working relationship and I’m assuming that the deal that was put in place was about as friendly as it was going to get and other Android manufacturers may not be dealt with as politely. If you add Apple’s lawsuits that were slapped on HTC last month you start to get the sense that Google and Android are in the cross hairs of the computer giants and Google will need to be proactive to protect its brand.
That is why buying Motorola makes such perfect sense. Google would not only have protection for future attacks from Microsoft, Apple and whoever else would want to step in the ring, they would also now have the power to go on the attack and start slapping lawsuits on anyone who dares to cross them. If HTC, Samsung and the other Android phone makers determine that the cost of working with Android is too much after paying royalties to other companies, then Google would still have control of its own mobile phone producer. Motorola has plans to release 20 Android smartphones worldwide this year and is still one of the largest producers of mobile phones in the world despite its operating losses over the last few years. Google’s phone division would be a huge player and would be able to still push Android to the masses even if it had to go at it alone.
We’ll have to wait and see how the lawsuit saga plays out and how it impacts the way that Android is used by manufacturers in the months and years ahead before but it has become increasingly clear that Google has ruffled a few feathers and sent a few shivers up their competitors spines with the explosive growth of Android over the last six months. Google has an opportunity to make a real splash by acquiring Motorola. It’s a move that would send more than a few shivers back at Microsoft and Apple and could either trigger an all out war or serve as a sign to back off. Either way, Google comes out on top.
4 Responses to Why Google Should Buy Motorola?
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Wow, how uncanny that you foreshadowed this….
And your article makes as much sense now as it did when it was published….
Dude, you can see into the future. Bestow upon me thy power.
I was actually shocked that I got something right for a change. I like to through my two cents out there every now and then but I’m usually way off base. I was really shocked by the fact it was still relevant after all this time.
If you read the rest of this blog you’ll realize that I have no mystical powers whatsoever. Just a lucky guess.
[...] stopping this bullshit so someone will have to emerge as Apple’s physical equal. Now that Google has Motorola in their back pocket it might be the perfect time to mount that offensive. Rip their fucking [...]