There’s no denying that Google’s maneuver this morning to acquire Motorola for $12.5 billion in cash is remarkable. Everyone is talking about every possible angle of the deal, as they should. The summertime is usually the doldrums when it comes to tech news. Not this year. Google is pulling off an acquisition that is larger than any that Microsoft, Apple, or any of their other main competitors ever have. Larry Page, wartime CEO. Larry Page, maverick.
As the resident Apple enthusiast around these parts, many of you want my take on this — and many of you probably don’t want my take on this, but will end up reading it twice as much as those who do. But don’t worry, I’m not going to go all Dan Lyons and immediately run my mouth without thinking. I actually took the entire day to think about this, read over the insane amount of coverage (though I didn’t get through even half of it), and form some thoughts.
But my main thought is the same as my initial one: this is either the smartest thing Google has ever done, or the dumbest. There is no in-between.
Many people seem to be tripping over themselves trying to explain why this is not just about patents. Okay, yes, there are some interesting potential side effects of this deal, such as in the broader consumer electronics space. Motorola could help Google turn around the disaster that has been Google TV. Motorola makes a huge percentage of the set top boxes that the cable companies use to push their over-priced content at you. And those cable boxes are absolute pieces of shit. But they’re highly profitable pieces of shit. While Google TV is a nightmare, it’s still a considerable upgrade from almost all set top boxes. The two sides could help each other here.
However, because many companies own related patents, the internet giant is open to being sued by rivals.
Its purchase of Motorola Mobility gives Google ownership of 17,000 mobile patents, with thousands more pending.
That means mobile phone makers that license Android software may now receive more protection against future patent lawsuits.
"We welcome the news of today's acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem," HTC chief executive Peter Chou said in a statement.
Besides HTC and Samsung, other companies that use the software include Sony Ericsson and LG Electronics.
So-called contract equipment manufacturers, which make phones for brands other than its own, also received a boost from the Google deal.
Shares in Taiwan's Foxconn rose by more than 14% while Compal Communications jumped by more than 7%.
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