Google becomes hardware company with $12.5B Motorola buy
Company pushes Android and aims for enterprise with acquisition
Computerworld - It's official: Google is now a hardware company.
Google said Tuesday morning that it has closed the deal to acquire Motorola Mobility for $12.5 billion.
Sanjay Jha is stepping down from his post as CEO of Motorola Mobility; Dennis Woodside, a senior vice president with Google, will take over the CEO post for the newly acquired company.
"I've known Dennis for nearly a decade, and he's been phenomenal at building teams and delivering on some of Google's biggest bets," Google CEO Larry Page said in a blog post. "Recently, he helped increase our revenue in the U.S. from $10.8 billion to $17.5 billion in under three years as President of the Americas region."
Google had received approval for the deal from both the U.S. Department of Justice and the European Commission in February. The purchase also was approved by officials in Israel and Taiwan, leaving China as the last holdout.
The purchase will help Google defend itself against various patent infringement lawsuits over the Android operating system, since Motorola has one of the smartphone industry's largest patent libraries.
Page also hailed the purchase as something that will allow Google to gain a bigger foothold in the mobile market.
"It's a well-known fact that people tend to overestimate the impact technology will have in the short term, but underestimate its significance in the longer term," he wrote. "Many users coming online today may never use a desktop machine, and the impact of that transition will be profound, as will the ability to just tap and pay with your phone. That's why it's a great time to be in the mobile business."
Industry analysts also think the acquisition could help Google push into the corporate enterprise.
A Google phone running Android could be very marketable not only to consumers but to IT departments that need to outfit workers with mobile devices. Basically, owning both the handset hardware and the operating system could be a powerful combination that could drive Android adoption.
Google has been working to expand its business into other hardware ventures. With Motorola, Google may be better able to push its way into the home entertainment market with its Google TV platform. In addition to being a world-renowned smartphone maker, Motorola also is a major player in the home set-top box sector.
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, on Google+ or subscribe to Sharon's RSS feed . Her email address is email@example.com.
- Google's next frontier: What it means to be healthy
- Google updates the Maps Explore Nearby feature -- for some users
- Chrome gets sharp after dumping 30-year-old Windows technology
- Google moves closer to selling smart contacts
- Google goes mum on Glass release plans
- Samsung Gear Live vs. LG G Watch: A real-world evaluation
- Android Wear deep-dive review: A smart start to smartwatch software
- Google's Larry Page talks of killing the 40-hour work week
- Google terminates Quickoffice apps on Android, iOS
- Google I/O looks to be about more than Android
Read more about Mobile/Wireless in Computerworld's Mobile/Wireless Topic Center.
- Mobile First: Securing Information Sprawl Learn how the partnership between Box and MobileIron can help you execute a "mobile first" strategy that manages and secures both mobile apps...
- AIIM Trendscape: The New Mobile Reality This AIIM Trendscape report shares data, expert opinions, and a unique perspective on the impact of cloud and mobility in the enterprise, surfacing...
- Empowering Your Mobile Workers A modern mobile IT strategy is no longer an option, it is an absolute necessity. Here's how some of the nation's most progressive...
- Mobile Content, Collaboration & IDC's 3rd IT Platform: The Next Frontier for the Mobile Enterprise IDC focuses this article on talks about the new IT platform. This 3rd IT Platform will be the new wave for about the...
- On Demand: Mastering the Art of Mobile Content Management Mobile device usage in the enterprise has skyrocketed, and it continues to escalate. IT must answer to users who demand access to their...
- Why do you need an enterprise mobile platform? Today companies must offer great apps that run on a range of devices, and connect to an exploding set of backend data. Appcelerator... All Mobile/Wireless White Papers | Webcasts