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Idealog—in the ideas business

Google buys Motorola. What next?

"I look forward to welcoming Motorolans to our family of Googlers."

So ended Google chief executive Larry Page's announcement on the Google blog that it had acquired handset manufacturer Motorola (for US$12.5 billion – a premium of 63 percent over the closing price of Motorola Mobility shares last week).

It's a combination that will supercharge Android, he says, although Motorola will continue to be run as a separate business.

Teaming up reinforces Google's heft in the heated patent arena, enabling it to better protect the Android OS.

"Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the remarkable revolution in mobile computing we are all enjoying today," Page says.

"We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The US 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."

What comes next? The buyout has the tech world buzzing – here's what they're saying.


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