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.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. 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.
Hong Kong, May 5-6, 2015
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT