Google's takeover of Motorola: not just about patents and Android

Wednesday 17 August 2011 | 13:57 CET | Author: Tim Poulus | Market Commentary
Google has agreed to buy Motorola Mobility for USD 12.5 billion, including cash of around USD 3 billion. The price implies a premium of 63 percent, likely meant to make it a 'knock-out' bid shareholders would find difficult to refuse. Management has already backed the offer, leaving it up to the shareholders and regulators to complete the deal. The initial market reaction (Google shares little changed, Motorola up 60%) suggests that Google shareholders are fairly neutral and Motorola investors don't expect a higher offer.

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Categories: Broadcast & Satellite / Mobile & Wireless
Companies: Apple / Cisco UK / EMC / Google / HP / HTC / InterDigital / LG / Logitech / Microsoft / Motorola Mobility / Nokia / Nortel / Oracle / Samsung / Sony / Sony Ericsson / ZTE Belgium
Countries: World
::: add a comment


People keep suggesting that manufacturers of Android might switch more to Windows Phone... but that falls flat in the face of the fact that no one wants Windows Phone anymore. It's name is in the toilet, the developers don't want to develop on it, it's market share against Android and iOS is tanking. Windows 8 is Microsoft's only hope in that regard, and the early reviews are not too great, and that may or may not be released by the end of the First Quarter of 2012. It is in the interest of these manufacturers to sell products that, you know, people actually WANT to buy. Furthermore Microsoft already basically runs Nokia and is using them to try to push their OS, so any company other than Nokia is in an even worse position with regards to the company that makes the software showing favoritism to one manufacturer above all others. For now Microsoft doesn't even factor into the equation, and they may never again, depending upon whether Windows 8 swims or sinks, because Windows Phone 7 is dead in the water and attempts to revive it are foolhardy.
Mad Fishmonger @ 17/8/2011 - 16:46

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