So I woke up today to a calm, cool morning. I walked outside and let my feet step into the wet grass. It was a little after 6 in the morning and my little section of the world was quiet. I grabbed my WSJ and found that it was… on fire.
Not literally of course.
Google is buying Motorola Mobility Holdings for $12.5 billion. Now that’s a big deal if I’ve seen one. What in the heck is Google thinking buying MMH like this?? They are thinking big, long term, and may have a way to really stick it to Apple and the iPhone.
In 2005, Google bought Android, which is now HUGE HUGE HUGE in the smartphone world. But what Apple had over Google was that Apple controls everything it does. Now, with this purchase, Google can do the same. Google steps up and can really play in the smartphone business. It’s really quite the change in times when you think about maybe just six or seven years ago with Motorola was kind because of the Razr phone. Remember those days? When phones flipped open and had a dial pad? The ancient times of 2005 and 2006… haha!
Now, in the background of all this, guess what happens? Nokia, another failing company, why, their stock price rises. Why would that happen? Think about it… Apple has their own phone. Now Google is in the game, for real and for keeps. Who does that leave hanging? Microsoft. My guess is that buzz coming next will be Microsoft buying Nokia. My only problem with this is that I do not believe that two struggling companies could save each other. At least with the Google deal, Google is strong and profitable. Microsoft is struggling with their own PC problems – i.e. the delay of Windows 8. And Nokia… well, need I say more… but it is quite interesting to see how the deals can push the pawns around the board.
Another part of this deal is the patents that Google will receive. Google will have in excess of 17,000 patents at its disposal. To do what with? To sue Apple… and I’m serious. All these tech companies sue the hell out of each other for infringements, etc. Google has its own suits against itself and the patents could help. Or in return, Google could find ways to peck at other companies.
Quick story… a guy I knew, who’s an engineer. He worked for a company and his job was to go and buy competetitor products. He’d take them apart and see if the design, etc. infringed on any of his companies patents. He made millions for the company doing this and was paid in bonuses for each lawsuit.
This is a crazy deal right now, but a good one. It shows stability in large companies like Google AND it shows the willingness to deal. With last weeks market jitters (which have been made back now), this is a good thing.
And since this is a writing blog… let’s face it, when Google starts pumping out a phone that will compete with the iPhone, it will only put more smartphones on the market… and we all know that smartphones are capable of handling ebooks, right? :)