Tuesday, August 16, 2011

Some Thoughts About Google Buying Motorolla

I learned today that Google has just bought Motorolla for $12.5 billions. This new acquisition clearly marks the ambition of Google on the mobile phone market. Indeed, mobile Internet consumption has been spiking those past few years, and clearly represents the fastest growing trend in the Internet business.

Google has already a great experience in the mobile Internet world, thanks to its Android operating system, which has already passed Apple’s number of users. Thanks to Motorolla, Google will access a large number of patents which will help Google to innovate in the market.

Now we can not talk about Motorolla without remembering the company was going in limbo for quite a while. Motorolla has not been able first to battle against Nokia in the 2000s and then, has missed the smartphone hype at the beginning. Motorolla will for sure benefit from Google’s strong operating system, but will it be able to innovate in terms of handheld to face Blackberry, Samsung and Apple’s competition?

Google set up some partnership with some mobile phones manufacturers for quite a while, especially Samsung, empowering them with Android. Will this new acquisition alter those relationships? To be honest, I don't think so. Android remains one of the best operating system for mobile phones, and the community of people using Android is so big, that I don't see them leaving for that matters.

Google has now reached a level of maturity, which allows him to undertake this kind of acquisition in order to grow faster in some existing market. Moreover, Buying Motorolla will allow Google to diversify its activity, becoming a manufacturer of goods, and not only services.

What do you think about it?