Author Topic: Why Google Bought Motorola  (Read 374 times)

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Epsilon

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Why Google Bought Motorola
« on: August 18, 2011, 05:23:26 AM »
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Technology Review reports: (Partial quote)
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Besides an impressive patent portfolio, Motorola will give Google greater control over the future of the mobile Web.

MONDAY, AUGUST 15, 2011BY ERICA NAONE

Google announced today that it has agreed to acquire the smart-phone manufacturer Motorola Mobility for $12.5 billion.

In a statement, Google said the deal was largely driven by the need to acquire Motorola's patent portfolio, which it said would help it defend Android against legal threats from competitors armed with their own patents. This issue has come to the fore since a consortium of technology companies led by Apple and Microsoft purchased more than 6,000 mobile-device-related patents from Nortel Networks for about $4.5 billion, in early July. Battle lines are being drawn around patents, as companies seek to protect their interests in the competitive mobile industry through litigation as well as innovation.

However, as people increasingly access the Web via mobile devices, the acquisition could also help Google remain central to their Web experience in the years to come. As Apple has demonstrated with its wildly popular iPhone, this is far easier to achieve if a company can control the hardware, as well as the software, people carry in their pockets. Comments made by Google executives hint that Motorola could also play a role in shaping the future of the Web in other areas—for instance, in set-top boxes.

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