Date: 16/08/2011

Google to acquire Motorola Mobile to fully android it

It's the growing mobile device market and cloud computing market driving the business decision in the broad IT industry, which covers systems, software and semiconductor devices. Apple is leading in the mobile device market by having capabilities in systems (equipment design) software and semiconductor chip design. Google supporting the tablet market by providing Operating System (OS) for mobile devices. Its open source OS Android is the most popular tablet OS after the Apple's iOS. Android is growing faster than iOS. But there are threats to Android if it fails to deliver the quality and cost advantage over other OS softwares, and also solves any patent related issues.

To make Android a favorite, it needs committed hardware support, that's best possible by Google owning IPs related hardware or owning a hardware company with rich IP.

Though Samsung's tablet is good but is facing legal hurdles in some of the regions mainly by Apple. Advantage for Apple in tablet market is it owns some of the important patents related to tablet and mobile devices, same is the advantage Microsoft has over other software vendors.

Samsung Galaxy uses Android. To support customer like Samsung to face less legal hurdles, Google may have to provide the safer technology without patent-issues or any other legal issues.

Answer to all this is Google deciding to acquire Motorola mobile. (Google and Motorola Mobility Holdings, Inc. have announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.)

When it comes to Motorola mobile. It's a company with a very good technology but not very saleable. There are many such companies who have very good technology but not commercially successful. Motorola mobile under the ownership of Google can make its technologies commercially successful.

Finally this writer's quick sensing is Google is immensely benefited by this acquisition but got to wait and see how much of it is direct. Android is sure to get stronger by this deal. And it's a big blow for any startups however cashrich to enter the tablet market without the support of any of these leading tablet IP owners.