Monday, August 15, 2011

Google buys Motorola

Surprise of the day: Google has opened its wallet to afford Motorola Mobility for $ 12.5 billion. Motorola in January had been split into two groups, acquired by Google consists primarily of business phones and tablets. The statement signed by Larry Page, Google CEO says Android will remain free and independent of Motorola. This acquisition is seen as a way to strengthen the position of Android and enhance competition in the sector. The choice of Motorola makes sense: it is an American company that makes only smartphones and only bet on Android in 2008.
This choice has also contributed to the success of Android, with a few blockbusters like the Droid. Motorola is also the first company to have launched the field of official Android tablets (equipped with Honeycomb) with Xoom. If commercial success was not to go, this tablet is a sign of close work with Google.Recent statements in favor of Windows 7 Phone from the CEO of Motorola (read: think Motorola to switch to Windows Phone 7) were at least a smokescreen which has proved effective: the agreement between Google and Motorola remained completely secret until the last minute.

Thus a real surprise and an essential information. This purchase could upset the balance of deep strengths in the smartphone market. Google shows its commitment vis-à-vis its platform, but this purchase may discourage some (Windows Phone HTC could privilege) and it should a priori mean that Google and Apple compete now directly on the issue of patents. Motorola has a large number of patents, this purchase also sounds as a compensation for the loss of patents from Novell and Nortel.

If no blockage is reached in this process of redemption (from the U.S. and European authorities in particular), it will be effective at the end of the year or early 2012. Google's partners have reported their initial reactions to this acquisition. In a fine patterns of HTC, Sony Ericsson and LG are almost a common statement and focused on the issue of patents "We welcome the commitment to defend Google's Android, its partners and the entire ecosystem "well said Peter Chou, HTC's CEO (via Engadget).

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