By Stephanie Weg
One of the biggest news in the technology sector last week was the Google-Motorola deal. Google have agreed to acquire Motorola for a handsome $12.5 billion, or $40 per share, which is a premium of 63% to the closing price of Motorola Mobility shares on August 12, 2011.
This deal shows that Google is serious in the battle of giants against Apple and Microsoft. Recently, Microsoft and Apple teamed up to purchase patents in an anti-competitive attack on Android. While they claim that Google was invited to join the deal but declined, the fact that Microsoft and Apple seem to have found a common goal makes one wonder whether that goal might be the war against common “enemy” Google.
So now, Google is pushing back.
Besides trying to establish Google+ as a rival to Facebook on the Social Networking front, the search giant also puts its money on mobile as one of the big trends for the future. The acquisition of Motorola gives late comer Google not only access to thousands of patents but also allows it to set mobile standards for hardware and software in the future without any formal constraints. It will be in a position to dictate the strategy for other players in the market who use the Android platform for their devices. The risk is that Android partners like HTC or Samsung will be lost to Microsoft, so Google will have to keep them happy by sharing Motorola’s intellectual property with them strategically. For now, the comments from HTC, Samsung and LG indicate that Google has done its homework and made sure the Android partners do not feel left behind.
Google’s bet for the future does not end in the mobile industry. According to a blog post by Larry Page, Motorola was also acquired for being a “market leader in the home devices and video solutions business.” It will be interesting to see what Google creates in this space.
Overall, the news sounds interesting, are welcomed by Google’s partners and offer interesting opportunities for new Google endeavours in the future.
So why does this this deal make us stop and think while a similar acquisition by Microsoft would have been “just another one”?
Here is the reason:
Google used to be legendary for its official inofficial value “Don’t be evil”. It was the Robin Hood of the web, the one company which was not following solely its own interests, but the player who really added value to the web in a way that no one else could, or wanted to deliver. This deal shows Google in a different light. This is not a smart new solution which is provided for free for all of us. This is a tough deal, an action of a player in the market trying to position themselves in a battle for the rulebook of the digital world. It does not fit the Robin Hood image at all.
But let’s be honest: Google has probably no choice. If the company wants to survive and grow, they need to play the game, and need to bend to the rules to a certain degree. The next years will show whether Google is doing this while keeping the “Don’t be evil" spirit, or whether it is on a slippery slope of succumbing to the temptations and pressures that one of the biggest players in the digital world faces. We all hope for case one, and the statement by Google that Android will stay an open source platform supports this. But then, “evil” also depends an awful lot on where you stand and which alternatives you have.
Do you think Google is becoming more evil? Do you think they can afford not to?
One of the biggest news in the technology sector last week was the Google-Motorola deal. Google have agreed to acquire Motorola for a handsome $12.5 billion, or $40 per share, which is a premium of 63% to the closing price of Motorola Mobility shares on August 12, 2011.
This deal shows that Google is serious in the battle of giants against Apple and Microsoft. Recently, Microsoft and Apple teamed up to purchase patents in an anti-competitive attack on Android. While they claim that Google was invited to join the deal but declined, the fact that Microsoft and Apple seem to have found a common goal makes one wonder whether that goal might be the war against common “enemy” Google. So now, Google is pushing back.
Besides trying to establish Google+ as a rival to Facebook on the Social Networking front, the search giant also puts its money on mobile as one of the big trends for the future. The acquisition of Motorola gives late comer Google not only access to thousands of patents but also allows it to set mobile standards for hardware and software in the future without any formal constraints. It will be in a position to dictate the strategy for other players in the market who use the Android platform for their devices. The risk is that Android partners like HTC or Samsung will be lost to Microsoft, so Google will have to keep them happy by sharing Motorola’s intellectual property with them strategically. For now, the comments from HTC, Samsung and LG indicate that Google has done its homework and made sure the Android partners do not feel left behind.
Google’s bet for the future does not end in the mobile industry. According to a blog post by Larry Page, Motorola was also acquired for being a “market leader in the home devices and video solutions business.” It will be interesting to see what Google creates in this space. Overall, the news sounds interesting, are welcomed by Google’s partners and offer interesting opportunities for new Google endeavours in the future.
So why does this this deal make us stop and think while a similar acquisition by Microsoft would have been “just another one”?
Here is the reason:
Google used to be legendary for its official inofficial value “Don’t be evil”. It was the Robin Hood of the web, the one company which was not following solely its own interests, but the player who really added value to the web in a way that no one else could, or wanted to deliver. This deal shows Google in a different light. This is not a smart new solution which is provided for free for all of us. This is a tough deal, an action of a player in the market trying to position themselves in a battle for the rulebook of the digital world. It does not fit the Robin Hood image at all.
But let’s be honest: Google has probably no choice. If the company wants to survive and grow, they need to play the game, and need to bend to the rules to a certain degree. The next years will show whether Google is doing this while keeping the “Don’t be evil" spirit, or whether it is on a slippery slope of succumbing to the temptations and pressures that one of the biggest players in the digital world faces. We all hope for case one, and the statement by Google that Android will stay an open source platform supports this. But then, “evil” also depends an awful lot on where you stand and which alternatives you have.
Do you think Google is becoming more evil? Do you think they can afford not to?
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