Do you remember back in August of last year when Google offered to buy Motorola Mobility for $40 a share? Soon after the announcement, many people assumed that it was a done deal. However, the complete opposite has happened. Since then, a lot of speculation was tossed around, with many saying that the deal would not be allowed to happen.
Despite the fact that both companies’ board of directors approved the deal, it was not until yesterday (Feb. 11) that the U.S. and European regulators approved Google’s purchase of Motorola Mobility for $12.5 billion ($40 per share). Since the purchase was announced 6 months ago, Motorola has all but stopped releasing new products. The Droid 4, Droid RAZR, RAZR MAXX, Motorola Xyboards, and the MOTOACTV were all released after the deal was announced.
What This Means for Android
- In the past year, the “patent war” between Apple and the rest of the world has heated up. Apple filed numerous suits against each of the Android manufacturers including a reason suit that is going after the Samsung Galaxy Nexus in the US. Furthermore, the purchase of Motorola will give Google complete control over Motorola’s 17,000 patents and 7,500 patent applications. In addition to the Google vs. Oracle case being delayed and lowered constantly, this could be Google’s saving grace in terms of patent litigation.
- In 2007, Motorola Mobility was a founding member of the Open Handset Alliance and has produced Android-only smartphones ever since. The combination of Google (the operating system) and Motorola Mobility (the manufacturer) could herald a new generation of innovation. After all, Google has never truly created its own hardware. The profits are coming directly from the software just like Microsoft and Windows. On the flip side, Apple makes its “smartphone” money off of hardware while producing their own software at the same time. Now that Apple has become the world’s most valuable company, again, Google might start to realize that true innovation comes from products that are made from start to finish (hardware and software, in a vertically integrated package).
Only time can tell where this deal will go. Motorola started its journey into the market as the company that introduced the world’s first portable cell phone nearly 30 years ago and also the smallest, lightest, and now thinnest phone (at least for a short amount of time).
What do you think? Will Google be releasing any new Galaxy devices with Motorola any time soon? Let us know in the comments below. Anyone craving a Nexus tablet?