Must Read: Sorry, but bringing back the Start menu won't help Windows 8

Topic: Google

Google: We now own Motorola Mobility

Summary: The Google acquisition of Motorola Mobility has been consummated, according to the CEO of Google.

James Kendrick

By for Mobile News |

The 12.5 billion dollar acquisition of Motorola Mobility has been finalized, according to a blog post by Larry Page (CEO) of Google. The deal was consummated after approval by regulatory agencies in the US and China.

Sanjay Jha, CEO of Motorola Mobility, will be stepping down as Google takes over the company.

Sanjay Jha, who was responsible for building the company and placing that big bet on Android, has stepped down as CEO. I would like to thank him for his efforts and am tremendously pleased that he will be working to ensure a smooth transition as long-time Googler Dennis Woodside takes over as CEO of Motorola Mobility.

Google has maintained it will keep Motorola operations separate from its own, mainly to appease Android partners that the new venture will get no preferential treatment. Assurances aside, there is little doubt there are a few uneasy partners with today's news.

It is not clear how Google will handle suddenly being a hardware company, given its history of software products and services. The low margin smartphone business doesn't fit with Google's other business, so it's anyone's guess how things might change in the future.

What Google keeps insisting is that we won't see the company take the Motorola product line and leverage controlling all aspects of the Android system as Apple does with iOS. We have pined for a solid Nexus line from the new Motorola/Google entity, but it doesn't look like that may happen anytime soon.

Of interest:

Topics: Google, Banking, Mobility, Security, Wi-Fi

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

27 comments
Log in or register to join the discussion

  • I see apple shaking in fear

    at the sight of this new competitor powered by FOSS and innovation.
    M$ is already going down, it's time for apple to follow suit!
    The Linux Geek
    Reply Vote

    • Shaking with laughter likely... Fear not so much.

      Those who should have "some" level of concern are the other android competitors who now have to wonder how closely google and moto will be working together and "IF" it will be natural for Moto to get favored status from google since they are one and the same now.

      Pagan jim
      James Quinn
      Reply Vote

    • You see it, but only you see it,

      so take your meds and the visions will subside. Now, get back under the bridge.
      michaellashinsky@...
      Reply Vote

  • Why does this remind me of a dog chasing a car?

    Now that they've caught it, what are they going to do with it?
    Userama
    Reply Vote

  • Motorola Name

    Are they going to keep the name "Motorola Mobility" or are they going to re-brand?
    statuskwo5
    Reply Vote

  • I'll sell you a bridge in brooklyn...

    ...if you believe for one min that Google is not going to use this advantage over other Andriod partners. Come on they just spent 12.5 billion and you think they are not going to aggresively try to make that money back by any means necessary. This will work out in Microsoft's favor as the HTC's and Samsung's of the world will start to put the WP7 OS on their flagship hardware to have another option besides Android.
    ...Just my two cents...
    C#2010
    Reply Vote

    • @#c2010

      Please anwser me this then. How is google letting motorola get preferential treatment with android different than what Microsoft has done with Nokia? Why hasn't MS/Nokia partnership push these so called future saviors of Windows Phone away from them? If I were Samsung wouldn't I be pissed that NOKIA gets that treatment even though I sell more phones? Why do i have to license windows phone while NOKia gets paid to use it? Oh but wait, Im definitely going to be very nervous that motorola will get preferential treatment. Also for James Kendricks whom has been railing agaisn't android because of the update situation. Hasn't Samsung, the world's leader in Android sales been selling phones with the not so latest version of Android, Oh but now Samsung and other partner will be extremely nervous because they can't have access to the latest and greatest even though they don't release all their current hardware with the newest version. One last example before I go is the Kindle Fire those the best selling android tablet have the latest OS?
      wolfn11
      Reply Vote

      • Partnership vs. Ownership

        One big difference - Google owns Motorola while Microsoft doesn't own Nokia. In fact, you said it yourself that "MS/Nokia [is a] partnership" while Google/Motorola is an ownership.
        statuskwo5
        Reply Vote

      • @wolfn11

        The difference is that Nokia choose to get preferential treatment. Nothing stops HTC or Samsung from partnering with MS. Now that Google owns Motorola, HTC and Samsung would be smart to invest in other platforms. Its just good business... And WP7 would be the next in line. This is not my grand idea, Samsungs CEO has already come out and said he is concerned about Googles purchase of Motorola.
        C#2010
        Reply Vote

      • Nokia is not getting preferential treatment, nor are they getting paid to

        use WP. They are partners with MS. They did a deal that gets them money in exchange for some of their assets like their world wide mapping data. MS doesnt pay them to use WP or let them use it for free. They pay just like all the other oems. It's up to Nokia if they want to use the money MS gave them for their data to pay for WP licenses or marketing or whatever they want to use it for. HTC or Samsung or Huawei or anyone else can do a deal of their own with MS anytime they choose. They have all already done deals in the past with MS to pay for the MS IP theyre using when they build android phones. It would be simple to expand their partnerships with MS if they have something they both mutually want to deal for.
        Johnny Vegas
        Reply Vote

      • Re; Partnership vs. Ownership

        @statuskwo5
        Being as the "deal" Elop made on Nokias behalf with MS, has resultet in Nokias share-price dropping from 8.40 just before "the deal" ( or trojan horse ?), to today's latest at 2.25.
        How long do you think Nokia can avoid a takeover by MS ?
        Already now, Nokia is well and truly painted into a corner.
        hkommedal
        Reply Vote

    • No Advantage for Android to Motorola

      Google won't be able to use Motorola to gain any advantage over the other Android Manufacturer for one simple reason. Teizen.

      Google wants to keep the Advertising revenue going. For that, they need Android on all of those devices.

      Motorola will, though allow Google to test more of the waters, and try several new experiments.

      Interesting times ahead.
      YetAnotherBob
      Reply Vote

  • yes partnership

    you're right, how does that negate the fact that NOKIA whom is not even owned by microsoft yet, is getting a better deal than 99 percent of the other companies whom actually took the chance to propel windows phones 7 despite the fact that theyre were selling hardware with android. Yet, Nokia is essentially forced to and still gets a better deal. Phone Magnufacturers don't care who owns what as long as they sell their product if Google impedes them from selling their phones with Android in it guess what they move on. But this notion that theyre nervous is FUD. Google is not dumb they know theyre not Apple. They can't sell as much as apple does on just one phone it is to their benefit to keep android available to their other partners.
    wolfn11
    Reply Vote

    • Bottom Line...

      The bottom line is that Google has to recoop their 12.5 billion investment in Motorola. How do you do that? By selling phones. How do you sell phones? By making them better then the competition... thats the bottom line! Partnership vs ownership... who cares. Google will want to make that 12.5 billion back!
      C#2010
      Reply Vote

      • Re; Google will want to make that 12.5 billion back!

        As the saying goes: There is more ways than one to skin a cat.
        They now have control over a huge pile of patents.
        Gives them a good chance to knock back MS's demands for royalties on Androids.
        Their main business that they do very well,advertising, is STILL their main business and with the new "patent armour", they can avoid a few expensive litigations.
        Do not assume that Motorola Mobility can not give Google, as owner, a reasonably income, without interfering.
        hkommedal
        Reply Vote

  • Android is Open...

    And Google does not pay for anybody to use it. If you want to change it and make like Kindle Fire, go for it. If you want things from Microsoft, go buy it.
    Bottom line is the patents. Now Google have them and they will be used for protecting the whole Android ecosystem, not just Motorola. Don't worry about the ROI, it's already computed. Motorola was not a breaking company when Google made the offer and it will pay back naturally. Forget about these ideas of favoring their own hardware... the thing is Open, and the specifications are available to whoever wants to built a device based on it.
    FuzzyIce
    Reply Vote

  • I am hoping to see Google get behind the Motorola Webtop / Lapdock

    There are quite a few people running Linux on the Motorola lapdocks from their smartphone's sd cards.
    I think there is some potential here for Google to run Chrome on the lapdock as well.
    SciZDNet
    Reply Vote

    • Me too...

      I'm really hoping that this will result in some type of Android/Chrome OS -Lapdock/ChromePad thing!
      30otnix
      Reply Vote

  • Why Sanjay Jha is leaving?

    Any reason?
    p.vinnie@...
    Reply Vote

    • He's not a Goog.

      The shakeup at MM (or whatever) has just begun
      Userama
      Reply Vote
CNET Join | Log In | Privacy | Cookies Close