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Friday, August 19, 2011

Five possible reasons Google bought Motorola

The Motorola AtrixGoogle's CEO Larry Page announced today that the search engine giant has agreed to purchase Motorola's smartphone and tablet division, Motorola Mobility, for a cool $12.5 (£7.7) billion. What could be behind such a move? What is Google planning? How will this change the smartphone battlefield?

Proper answers to these questions can be found in Tech Radar's coverage of the announcement. But if, like us, you want to take a wild and unconfirmed leap into a realm of circumstantial conspiracy theories - read on.

1 It's all about the patents

Yeah we know. It's a boring mundane, economical reason for a purchase but in reality it makes the most sense.

Android has been hit hard by patent lawsuits from Apple and Microsoft and by acquiring Motorola Mobility they also acquire all the patents Motorola own, numbering some 17,000 and significantly strengthening Google's patent portfolio.

We think it also gives them means, should they so desire, to counter-sue the likes of Apple or Microsoft for infringing on any of Motorola's patents. A previous Google blog post (August 3rd) details some of the struggles the company has had in the patent wars of late.

2 An all-conquering Moogle superphone

Google turned to HTC to produce its first handset, the Google Nexus One back last year. Then came the sequel, the Google Nexus S, produced by Samsung and the first to ship with Android 2.3 (Gingerbread). For the third iteration, the Google Nexus Prime, Google has apparently decided to stick with Samsung - although we really wanted to see a Google/LG partnership. Who wouldn't want to own the Google Optimus Prime?

But, now that Google has joined forces with Motorola, could there be plans for a fourth handset lurking somewhere in Silicon Valley? Imagine a phone with the power of a Google specification and the stylish design of a Motorola handset. It could be called the Moogle Droid Nexus Razr Prime S.

3 The Death of the Nexus Prime

Of course, another reason for Google wanting to attach itself to Motorola could involve a falling out with Samsung and the death of the Nexus Prime.

Samsung is currently banned from shipping the Galaxy Tab 10.1 due to an injunction served out by Apple. By purchasing Motorola, Google could be insuring itself against any failures on the part of Samsung to produce or distribute the Nexus Prime. Alternatively, rogue ninjas may have broken into Samsung's Seoul HQ and destroyed the only prototype of the Nexus Prime handset. We just don't know.

4 Google TV

In Larry Page's blog post, he specifically references Motorola's proficiency with video solutions.

"Motorola is also a market leader in the home devices and video solutions business. With the transition to Internet Protocol, we are excited to work together with Motorola and the industry to support our partners and cooperate with them to accelerate innovation in this space."

As a platform, Google TV uses the Android operating system and hardware has already been developed by Sony and Logitech. The acquisition of Motorola could mean Google want to put out some first-party hardware sometime in the near future.

Many tech companies are interested in moving their products out of the study and into the living room. It's only a matter of time until your Gran fires up her brand new Motorola set-top box to enjoy a spot of YouTube with her afternoon tea and biscuits.

5 Motorola in danger

Like a gallant fourteenth century knight riding in to save a damsel in distress, Google could have made the move to bail out a bruised Motorola, still haemorrhaging cash after unsuccessful lines such as the PEBL, Q or DROID. After all, the company split into two divisions after losing $4.3 billion between 2007 and 2009.

Frankly though, we're clutching at straws here. We just wanted to use the knight metaphor. And the word haemorrhaging.

In fact, Motorola has released some extremely good products over the last year or so. Specifically, the Xoom tablet and the Atrix smartphone (which we're reviewing in the next issue of the magazine) have signalled a return to form for the American company. Perhaps then, Google recognises the potential in the hardware and wants a piece of the action. After all, Page did state in his blog post: "We will run Motorola as a separate business."

What will be most interesting though is the way in which the other manufacturers producing Android handsets - Samsung, LG, HTC, etc - adapt to this latest development. They say they're happy with the deal but as the old adage goes, hell hath no fury like an OEM spurned. So only time will tell how the market adapts to today's news.
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