http://www.forbes.com/sites/boninbough/ ... google-buyQuote:
As most of you now know, Larry Page, CEO of Google, announced in a blog post yesterday morning that the company has agreed to acquire Motorola Mobility for $12.5 billion. This is a huge announcement for the mobile community especially since Android already controls a little under half of the mobile market. Now, with the patent power of Motorola, little will hinder Android’s growth.
Android will continue as an open-source platform, which will further allow for increased innovation from an unlimited community of developers. Already there are more than 250,000 apps available through Android, and the majority are free to subscribers. Add that to the edge of having an in-house hardware operation, and you can see how this acquisition is already far more successful than Google’s own, not quite so triumphant, attempt at device development with the Nexus One smartphone [sales remained slow ten weeks after launch]. The move will force skeptics to consider once closed doors now readily open up for the mobile juggernaut.
The majority of buzz around the acquisition has focused on device patents and positives stemming from the acquisition related to in-house intellectual property. Take, for example, The New Yorker’s piece which notes Google simply “wants the company because it’s got a big heap of patents.” Cool – I can understand this with all the IP litigation going on – but the truth is, there is more to this acquisition than meets the eye.
This deal has a major impact on tablets. As both companies look to diversify customer base, having both a successful OS and patented device development in-house will allow Google to move much faster than as a separate entity. Patents are not the only windfall.
Increasingly, data caps would have impacted these two entities in the coming years. According to an article in The New York Times this weekend, “Over the last three years, the amount of money consumers spent a month on mobile calling declined to $30 from $40…During the same period, the average amount spent on data nearly doubled, jumping to $13 from $7.” Great news for Android and the app market, but what will that mean from the perspective of wireless providers, such as Verizon and AT&T? Google’s combination of software and hardware will impact consumer behavior through seamless device design, only accelerating the trend of using more and more data. As more people are able to afford a smartphone, data usage will continue to increase, putting added pressure on wireless providers. As the presence of data caps becomes inevitable, how will Android continue to work with providers on tiered solutions and how will all of this ultimately affect market shares?
With the deal set to wrap up a mere five months from now, keep a close eye on Apple and Nokia reactions to this partnership – it will certainly impact the litigation landscape. A smart acquisition with innumerable short and long-term impacts. What do you think?
