Tuesday, 16 August 2011

Google buys Motorola Mobility

An interesting news published on the The Economic Times
is the purchase of Motorola by Google.

I copy below the main points:

NEW YORK: Research in Motion and Microsoft Corp are emerging as potential winners after Google Inc said it would buy Motorola Mobility for $12.5 billion.

Potential losers include Motorola's handset rivals that partner with Google such as HTC Corp, Samsung Electronics and Sony Ericsson. These licensees of Google's Android software now face the risk promoting a direct rival.

If this tie-up irks manufacturers, companies with their own software such as Microsoft and RIM could gain as handset makers start to shy away from the Android system.

Meanwhile, the deal announced on Monday is unlikely to affect Apple Inc's quest for the hearts and minds of smartphone customers.


Phone makers that partner with Google for its Android software officially said they welcomed the deal. But some analysts questioned their sincerity because their efforts to promote Android would now benefit a director competitor.

"Google is essentially granting most favored nation status on Motorola," said J. Gold Associates analyst and consultant Jack Gold.


Android handset makers may be more willing to take a gamble on the unpopular Windows phone as an alternative.

But the deal brings Microsoft directly into legal conflict with Google over Android patents, which may hamper its attempts to collect royalty payments from Android handset makers.

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