Google will pay cash to acquire Motorola Mobility for a total of about $12.5 billion dollars. This bold move intends to drive innovation for the Android Platform, an open source environment for mobile and online, and most importantly it aims to fill the gap left by the nearly obsolete cable entertainment services. The acquisition plans to build new and innovative programs and devices for the home market to create a seamless experience to engage users in creative ways and bring about a conversion between home and mobile devices.
Android started 6 years ago through the vision of Andy Rubin, Senior Vice President of Mobile at Google, to align standards across the internet and mobile under a single Open Source platform: Android. According to Larry Page, "since November 2007, more than 150 Million Android devices have been activated worldwide through a network of 39 manufacturers 231 carriers in 123 countries. 550,000 [new] devices are lit up [activated] every day."
As founders of the Open Handset Alliance, Motorola placed a large bet on the Android Platform for their tablet and mobile devices early which now seems to have paid off. With over 80 years of innovation, Motorola has been a leader in mobile devices by introducing the world's first cell phone 30 years ago and then the StarTack which was the smallest mobile phone on earth. It now holds about 17,000 patents with thousand others pending and is a leader in wireless standards.
If the deal is allowed by government regulators, it already passed unanimously through both boards, Motorola will be run as an independent entity and focus on accelerating innovation in the home business by extending alliances between the cable and telecomunications industry (Verizon, AT&T, Sprint, Comcast, Time Warner, etc.) taking advantage of the current IPv6 transition.
We are definitely excited about Android and love Motorola devices. If allowed to happen the acquisition will provide the Android Open Source Platform a fertile ground for innovation. As web usage shifts to mobile we are curious to find out how Motorola will bring a shift to the home devices market to give consumers greater interactivity and more choices.