Friday, February 14, 2014

Why did Google buy Motorola?

This is my first post of this week.
So last week, I wrote briefly about Motorola selling Lenovo.
This week, I want to talk about why Google bought Motorola in the first place.

It was general consensus that Google bought Motorola for patents. At that time, smartphone war was heating up all over the world. Google paid $12.5 for 25,000 patents. Now, that's a lot of money.
But, why not just buy just the patents? Motorola knew that Google needed those patents in order to protect
themselves(Android) from outsiders. But they could have licensed the patents, but they didn't. Back then, a lot of people thought that Google had bigger plans than just buying the patents. But it turns out they bought it for the patents only because it is revealed that they sold Motorola to Lenovo.
Also, the fact that Motorola pushed Google to buy them at a premium price had a big role in this acquisition.

The main focus is that they bought Motorola because they needed to protect Android from Apple, Microsoft, and other competitors. The amount of time that Google paid to buy Motorola at the time was twice the profits of 2010 alone. Apple and Microsoft were using patents to slow down Android, and it's evident that they had no other option but to protect themselves.

This article I found explains the concepts that I described above with evidence.
http://bgr.com/2011/08/16/is-googles-motorola-buy-the-only-way-to-save-android/


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