Deal will make Google a producer of tablets, set-top boxes and, most importantly, Android smartphones.
Google has agreed to acquire Motorola Mobility, Motorola's devices subsidiary, for an estimated $12.5 billion, or approximately four times what it paid for display ad giant DoubleClick three years ago. The deal is a major leap forward in Google's mobile ambitions, bringing it into closer competition with Apple.
Motorola Mobility was the mobile devices division of Motorola until its spin-off in January 2011. Google said it plans to continue running the company as a standalone business. In addition to Android smartphones, Motorola Mobility produces tablets, Bluetooth accessories, set tops, digital video recorders, and other products. It reported Q2 2011 net revenues of $3.3 billion.
As Google brings device design and manufacturing in-house, questions will inevitably come up about the future of its open development policy for the Android operating system. In a call with analysts this morning, Google CEO Larry Page pledged fealty to its device and developer partners.
"Android is growing like crazy," he said. "We think this will benefit all partners in the Android ecosystem. "
The deal may also give Google an edge in the recent legal challenges related to mobile patents. In July Google lost a bidding war for Nortel's mobile patents to a group of rivals that include Apple, Microsoft, and Research in Motion. That loss led to a war of words between Microsoft and Google on the companies' official blogs.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.