Technology

Google Buys Motorola Mobility, Extends Battle for Tech Domination

Posted on August 15, 2011 at 9:29pm by Liz Klimas
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MOUNTAIN VIEW, Calif. (The Blaze/AP) — Google is buying cell phone maker Motorola Mobility for $12.5 billion in cash in what is by far the company’s biggest acquisition to date.

Google Inc. will pay $40.00 per share, a 63 percent premium to Motorola’s closing price on Friday. The deal gives Google direct control over the maker of many of its Android phones, which Google CEO Larry Page says will “supercharge the entire Android ecosystem.”

This deal has experts talking about this acquisition as a move to protect itself against patent wars from competitors, namely Apple.

CNET has more:

In his blog post explaining the deal, Google‘s CEO Larry Page said that Motorola’s strong patent holdings were a major consideration in the deal.

“We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”

Since the Android operating system was first developed, Google’s strategy has been to make the open-source software available to any hardware maker for free. The idea was to compete against Apple’s closed iOS platform by allowing hardware makers such as Motorola, Samsung and HTC to leave much of the software innovation to Google, while they could focus on innovating around hardware. Meanwhile it could also battle against Microsoft, which asks its licensees to pay a fee for using its software.

Success from these techniques drew the attention from competitors and resulted in patent purchases that would force a $15 licensing fee on Google for every Android device. CNET quotes Google’s Chief Legal Officer:

“A smartphone might involve as many as 250,000 (largely questionable) patent claims, and our competitors want to impose a “tax” for these dubious patents that makes Android devices more expensive for consumers,” said David Drummond, Google’s chief legal officer. “They want to make it harder for manufacturers to sell Android devices. Instead of competing by building new features or devices, they are fighting through litigation.”

Information Week reported that this deal would bring as many as 25,00 patents to the Android.

With a stronger patent portfolio, Google will have more ammunition for counter-claims. That threat is likely to result in more favorable settlements of existing patent claims and to deter future lawsuits, at least from companies that actually ship products–non-practicing entities that sue for patent infringement, like Lodsys, generally don’t fear counter-lawsuits because they don’t offer products that can be blocked with an injunction.

. . .

“This gives Google a pretty strong portfolio that could be useful in a defensive way,” said [Ed Black, CEO of the Computer & Communications Industry Association to CNET in a phone interview]. “At the same time, the deal shows that companies have to make huge investments to compete. It reveals the system is broken.”

This video from Independent Television News sums it up:

Fox News took the announcment of Google‘s Motorola acquisition and looks into how it’s becoming more and more evident that Apple and Google will continue on as the front-running mobile device providers as others like Blackberry and Nokia quickly fall behind.

Apple plans to build 26 million iPhone 5s in the second half of 2011, reports suggest, and will ship nearly 100 million phones this year. Yet over 5 million people worldwide bought Samsung’s Google-powered flagship phone in the first 85 days it was on the market — that’s one every 1.5 seconds. According to research firm Gartner, Android phones made up nearly 44 percent of sales in the second quarter of 2011.

Fox News begs the question: Are you Apple or Google?

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Comments (36)

edwardstv
Posted on August 17, 2011 at 1:43pm
Google is expanding very fast.It’s very tough competition out there. Go ahead. Keep yourself on the top of the move. May I’m with Google rather than Apple.
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rightwinglefty
Posted on August 17, 2011 at 9:30am
Can you imagine Microsoft buying HP. It would never be allowed. Google is getting special treatment due to political cronyism. Same old, same old.
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- obfusk8
  Posted on August 17, 2011 at 10:46pm
  Because a Sr. V.P. of Google is …. Tadahhhhh … George Soros’s son. That would be the same George Soros who has a wholly owned subsidiary called “The Executive Branch” of the United States Government. Does that answer the question?
  Report Post »
AllAmericanGirl22
Posted on August 17, 2011 at 8:19am
Oh Great. What else does Google own? The don’t own LG do they??
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dscheerer
Posted on August 16, 2011 at 1:26pm
This deal should never have been allowed to happen. Where were the regulators on this one?
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- MrObvious
  Posted on August 16, 2011 at 10:24pm
  I see nothing wrong with the deal. Companies buy and sell others all the time. There is no monopoly risk in this case; so, no legitimate reason for the government to interfere. Goggle is on friendly terms with the administration; so, there are no illegitimate reasons to expect interference either.
  Report Post »
- jb.kibs
  Posted on August 17, 2011 at 12:11am
  we should be “regulating”… mainly by not buying motorola or using google…
  Report Post »
Micmac
Posted on August 16, 2011 at 12:46pm
Google is a partner in NoBama’s great plan. So any buyout has further implications for when it’s time to “consolidate”, control and monitor. George Orwell, a prophet before his time.
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Rajabear1
Posted on August 16, 2011 at 10:58am
Well, kids, here we gooo!
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- jb.kibs
  Posted on August 17, 2011 at 12:10am
  exactly.
  Report Post »
TomFerrari
Posted on August 16, 2011 at 10:43am
I firmly believe, if we allow repatriation of foreign earned profits without taxing it AGAIN, then, they (Google and Apple) would build a new communications system based on the vacated digital FM spectrum, that would support vitually unlimited data, which means all-you-can-eat video, streaming, data, voice, etc. It would also mean MILLIONS of new jobs.

But, we force them to keep their money overseas, where it has ALREADY been taxed, because, in our greed, we will be DAMNED if we let them get their hands on their own money without taking half of it for ourselves.

The U.S. government is OUT OF CONTROL.

We need a Constitutionally-bound, -limited government.
Just like the one we were given by our founders.
Where men were meant to be FREE !

FREEDOM ROCKS ! !
.
,
,
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- the_ancient
  Posted on August 16, 2011 at 12:07pm
  There is not, and never will be a network that will support “unlimited data” all networks are limited, Unlimited is a marketing term and should be declared as false advertisement, because there is no company in the world of offers true unlimited service NONE, it can not be done and still make money.
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 12:12pm
  BTW there is already a company out there trying to build a independent LTE network, LightSqaured, and it is getting EXTREME governmental and industry push back, and even outside of Industry Pushback from the USAF and GPS Manufacturers,
  
  LightSquared is the best bet for your dream right now, and the FCC may put a stop to it.
  Report Post »
geo01
Posted on August 16, 2011 at 9:32am
.
#1 I agree with AFFINNITY……I won’t trust them either.
.
#2. Whatever happened to the Sherman Anti-trust Act?
.
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- smithclar3nc3
  Posted on August 16, 2011 at 10:16am
  Google has the worst search engine in cyberspace, and it’s purposely bad to muddle the ability for anyone to find information. I can find information faster in library than through google.
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 12:02pm
  Umm if this deal violates the Shermen act then I can Name about 1,000 others that should have as well, Starting with Orcale/Sun, Comcast/NBC, Att/TMobile (not technically approved but will be) should I go on?
  Report Post »
affinnity
Posted on August 16, 2011 at 9:13am
I won‘t trust Motorola anymore because I don’t trust Google.

For searches I use:
http://duckduckgo.com/
http://www.ixquick.com/

I wish Conservatives would start computer, internet and cell phone companies, someplace other than California, so we could stop creating all these Liberal NWO affiliated billionaires.
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- MrObvious
  Posted on August 16, 2011 at 10:28pm
  Motorola Mobil has been backsliding for awhile now. Given a choice between Google or Microsoft, as new owner, ah … it’s a toss up. Ok, Google it is. One to the next item.
  Report Post »
olddog
Posted on August 16, 2011 at 9:05am
Whoopi I’m Google Free. I have quit using google totally. I just don’t trust google, it‘s supposed to be a search engine but it’s tied in with the Obama administration and their envolvement with the Egypt riots made it clear google has an idea of control over us..Now expanding to cell phones and probably will be listening in. Don’t take a chance be google free also, better wake up..
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- the_ancient
  Posted on August 16, 2011 at 11:55am
  how is it “tied in” any more than any other major Company? Do you stand against Halliburton because it was “Tied in” to the Bush Admin? you sound like a Liberal.
  
  Big Companies seek government contracts because they are profitable, period.
  
  As to Egypt, that was not an official Google action, that was an action by an employee, an executive of Google, not by the company itself
  
  Do you have any evidence of anything Google has done that validates your distrust in them? Who did you “switch” to, Microsoft? Apple? you think you can trust them??? HAHAHAHAHAHAHAHAHA
  Report Post »
AmeriCat
Posted on August 16, 2011 at 5:49am
Can’t purchase anything General Electric, and now Motorola.
Too bad. Remember their great little flip top cell phone?
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- the_ancient
  Posted on August 16, 2011 at 9:02am
  I hate to tell you but even visiting this site is using Goolge Services, some or all of the ads on the Blaze are done trough DoubleClick/AdWords which is owned by Goolge
  Report Post »
- affinnity
  Posted on August 16, 2011 at 9:32am
  The_Ancient. Your right Google is everywhere but we can at least try to not support them intentionally. I do all private searches and I clean everything each time I use the internet. Personally I never click an ad on any site I am visiting. My biggest fault is I do use You Tube a lot.
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 10:25am
  Until I see actual evident of malfeasance on the part of Google I am not worried too much about them, Unsupported Rantings by Glenn Beck is not enough for me, no matter how much I like and follow Glenn Becks over all message, until he can disclose what if any evidence he claims to have seen I will maintain my skepticism, the fact that they are tiring to get lucrative government contracts is a symptom of a problem, not the problem itself.
  
  Apple is by far the most open and transparent Major Tech company out there, MS, Apple, etc all maintain massive close source programming and massive controls and totalitarianism draconian policies over anyone wanting to do anything with their platform.
  
  Facebook, Apple, and MS all have terrible Privacy, and data rights policies for User, have Draconian terms of use and yet Glenn Beck is Fine with them, often Promoting them on air, but Google gives away almost all of its services, Provide a Completely Open Source Platform(s) for development and is fairly transparent and gets Glenn Beck’s scorn? Something is Strange there….
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 10:27am
  This “Apple is by far the most open and transparent Major..“ Should Read ”Google is by far the most open and transparent Major….”
  
  Apple is a antithesis of Open and Transparent
  Report Post »
ProbIemSoIver
Posted on August 16, 2011 at 4:52am
Can someone say “Military Industrial Complex”? It is obvious these Companies are two players in the progressive global elite club. The global elite a.k.a. NWO / Illuminati owns 95% of our politicians republican AND democrat. These corporations and others like them have the Finances to Campaign their hand picked representatives, to work their way up to Washington, to say they really represent you, the people. Are we on to this yet ??? Come on people, wake up !!!! All of our Presidential Options are Global Elite-Owned Neo-Cons, except for RON PAUL !!!!
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- beebacksoon
  Posted on August 16, 2011 at 7:13am
  Didn’t Google take over some real estate (space) at NASA? And didn’t they have a satellite roaming air space fairly recently, and not revealing (truthfully) what info they were gathering?
  Google, and Facebook, to name two, don’t pass the smell test. Especially now that Goldman-Sachs AND ex-press secretary to Obama are now working within Facebook!
  Report Post »
- SimpleTruths
  Posted on August 16, 2011 at 9:23am
  Notice how even Fox avoids even talking about Ron Paul? And when they do they dismiss any credibility he has. Fair and balanced? Anybody can make up a tag line, doesn’t mean squat.
  Report Post »
- ProbIemSoIver
  Posted on August 16, 2011 at 12:45pm
  Yes simpletruths, Now fox, like all the others are MSM too. I have known this for months. BLAZE is biased and has it’s own agenda also. I learn Information about my enemies from my enemies, because they do not like each other also, and are exposing the others. Glenn must be a Neo-Con since he endorses them. also, bebbacksoon Obama Basically shut down N.A.S.A. and told the Head of N.A.S.A. that his new #1 objective was to make the Muslim’s “feel good”.
  
  http://www.youtube.com/watch?v=TVqbPHmtt8w
  Report Post »
the_ancient
Posted on August 16, 2011 at 4:49am
Hopefully this will put a end to apple’s anti-competitive lawsuits….

I love how Glenn Beck attacks Google but never say anything about apple which of the big 3 Mobile Tech companies (Google, MS, and Apple) Google is the most trust worthy. Apple is pure draconian evil
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- affinnity
  Posted on August 16, 2011 at 9:27am
  What we really need is a private stock conservative business group to create an operating system to compete with Apple and Microsoft. The Liberals control all of the software.
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 10:42am
  The Richer you get, the More Liberal you become.
  
  It is very easy to understand if you understand the Free market and Human Nature, When if business your natural state it to eliminate the competition in any legal way you can, so if you can influence the law the make your competition illegal or make it harder for your competition to obtain your level of wealth then that is GREAT to you if you have already obtained wealth
  
  This is why people need to embrace Libertarian values because then the government is not strong enough to even try and influence a market.
  Report Post »
foobear
Posted on August 16, 2011 at 4:10am
This is probably tied to Motorola filing a patent lawsuit against Google.

Moto has enough patents that they should be able to engage in a detente with Apple – who has been blocking Android tablets that compete with their iPads from selling in Europe.

If anyone doubts why we need patent reform (especially software patent reform), look no further. It’s a huge issue.
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- the_ancient
  Posted on August 16, 2011 at 4:44am
  We do not need “reform” we need the elimination of software patents.
  
  Software are like books except they are written for a Computer to read instead of a person. As such they should be covered by copyright not patents, you cant patent a book.
  
  EU centric site but alot of good general info on the subject.
  http://www.nosoftwarepatents.com/en/m/intro/index.html
  
  //I am a software developer with 12 years experience developing applications
  Report Post »
- HADEN0UGH
  Posted on August 16, 2011 at 9:41am
  Ancient is correct. A patent on software is stupid. I also think the touch patent is stupid, too. It’s like getting a patent on a keyboard, monitor, or memory.
  Report Post »
- the_ancient
  Posted on August 16, 2011 at 10:46am
  @HADENOUGH, it depends on what your referring to, the Actual Device that makes Touch Possible can and should be a patent-able product, the CONCEPT of touch should not be however
  
  This is the problem with Software Patents, they are patenting CONCEPTS and not REAL PRODUCTS. for the most part, even most troublesome if that most of the concepts that are patented by the Big Companies were concepts that were actually “invented” aka thought of by someone else years ago but could not have been realized due to technological or economic reasons at the time, thus should not even been patentable under the current system yet some how are rubber stamped by the USPTO
  Report Post »

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