Google expects Motorola Mobility purchase to deliver big returns

As CEO Larry Page expects "great devices" to come from the purchase of Motorola Mobility, what could that mean for other Android ecosystem partners?
Written by Rachel King, Contributor

Google is banking big time on its proposed bid for Motorola Mobility, based on a recently published company update from CEO Larry Page.

According to the letter, Page is expecting "to build great devices capitalizing on the tremendous success and growth of Android and Motorola’s long history of technological innovation."

Google is planning to pay $12.5 billion to acquire Motorola Mobility -- a deal that could be considered all but ready to go at this point following approval from both the European Commission and the U.S. Department of Justice.

When all is said and done, the acquisition of Motorola will give Google a hardware arm, which will presumably concentrate primarily on producing new Android products.

Nevertheless, even as it will include the development of other products not based on Android, what remains to be seen is how this is going to affect the heavily-fragmented Android ecosystem overall.

Page and company have repeated (as he did in this memo) for months that Android would remain open to all, but certainly there is going to be room for worry about how Google would be promoting its in-house projects over its competitors, which are incidentally partners too. Makes for a confusing relationship.

The letter also implies some pressure for Motorola Mobility if/when it comes into the Google fold. Google has already suffered some minor stumbles when it comes to hardware products its teamed on, such as Google TV and Chromebooks as consumer devices. With the addition of Motorola, Google is obviously looking to develop products that will go head-to-head with Apple's iPhone and iPad once and for all.

Page is hoping that Motorola will deliver.

via MarketWatch


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