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Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
Google's $12
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Google's $12

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Google's $12.5 billion acquistion (Motorola)

Google's $12.5 billion acquistion (Motorola)

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  • 1. Google's $12.5 Billion Gamble <br />Latest Acquisition -> MOTOROLAMOBILITY<br />
  • 2. What’s an acquisition?<br />An acquisition takes place when one company completely buys out another company, and the former company remains. Examples include:<br />- An Investment firm buys all the stock of a public company (Blackstone Group buys Harrah's Entertainment)<br />- A Company buys another company (Wachovia buys First Union) If the two companies join together to become a new company, it is then considered a merger (Arcelor and Mittal Steel merge and become ArcelorMittal). <br />
  • 3. Larry Page<br />
  • 4. Supercharging Android(Source taken from, http://googleblog.blogspot.com)<br />Less than six months after taking over as chief executive, Google co-founder Larry Page has placed the Internet giant's most audacious wager yet. <br />Larry Page : Since its launch in November 2007, Android has not only dramatically increased consumer choice but also improved the entire mobile experience for users. Today, more than 150 million Android devices have been activated worldwide—with over 550,000 devices now lit up every day—through a network of about 39 manufacturers and 231 carriers in 123 countries. Given Android’s phenomenal success, we are always looking for new ways to supercharge the Android ecosystem. That is why I am so excited today to announce that we have agreed to acquire Motorola. <br />
  • 5. Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the remarkable revolution in mobile computing we are all enjoying today. Its many industry milestones include the introduction of the world’s first portable cell phone nearly 30 years ago, and the StarTAC—the smallest and lightest phone on earth at time of launch. In 2007, Motorola was a founding member of the Open Handset Alliance that worked to make Android the first truly open and comprehensive platform for mobile devices. I have loved my Motorola phones from the StarTAC era up to the current DROIDs.<br />
  • 6. Motorola is also a market leader in the home devices and video solutions business. With the transition to Internet Protocol, we are excited to work together with Motorola and the industry to support our partners and cooperate with them to accelerate innovation in this space. <br />This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android's success and we look forward to continuing to work with all of them to deliver outstanding user experiences.<br />
  • 7. The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. I am confident that these great experiences will create huge value for shareholders. <br />I look forward to welcoming Motorolans to our family of Googlers. <br />
  • 8. Google Inc. (GOOG)<br />Google the biggest maker of Smartphone software, agreed to buy Motorola Mobility Holdings Inc. for $12.5 billion in its largest acquisition, gaining mobile patents and expanding in the hardware business. <br />Motorola is one of 39 manufacturers of handsets that use Google’s Android operating system. <br />Motorola shareholders will get $40 a share in cash, the companies said in a statement. That’s 63% percent more than Motorola Mobility’s closing price, Both boards have approved the takeover. <br />
  • 9. Google Inc. forged a $12.5 billion deal to buy Motorola's cell phone business, a move that could reshape the Internet giant's fortunes in the mobile world while also giving it an arsenal of patents for legal warfare with Apple Inc. and others.<br />Google’s largest acquisition, gaining mobile patents and expanding in the hardware business.<br />The purchase of Motorola Mobility Holdings Inc., by far the largest in Google's history, thrusts the Internet company into the cutthroat business of making Smartphone's, tablet computers and cable set-top boxes. It will nearly double Google's work force and test the company's young alliance with other cell phone makers.<br />
  • 10. Sanjay Jha, CEO of Motorola Mobility, said, “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”<br />
  • 11. Patent protection (17,000 acquired)<br />Before Google bought Motorola, the Android ecosystem was in real danger of having innovation stymied by litigation.<br />Microsoft, Oracle, and Apple were all bearing down on Google as well as Android partners Samsung and HTC over patent infringements.<br />The problem for Google was that it didn’t have enough mobile patents to fight back. That’s the way these things usually work. One big company typically says to another big company, “Yeah, we might be infringing you there, but you’re infringing us over here” and then it turns into a draw. With Motorola’s 17,000 patents on its side, Google has essentially put an end to the Android patent wars. <br />
  • 12. Ecosystem<br />Google suggests that they would be running Motorola Mobility as a separate business which raises a few questions about the upcoming Android Smartphone's from Google and also whether Google is looking forward to bring a Apple-like integrated ecosystem for its Smartphone's.<br />Andy Rubin, Senior Vice President of Mobile at Google, also said, “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”<br />
  • 13. But let's be real: This deal could end up being a disaster.<br />How? Well, let's have a look at the host of questions and challenges the deal raises, starting with this one:<br />First, How do HTC and Samsung, two of the leading Android-based smartphone makers, think about the fact that their "partner" Google is now competing directly with them for hardware sales?<br />The only reason Android (and Google) have any share of the mobile game, after all, is because hardware makers like HTC and Samsung adopted Google's software platform. And now Google is stabbing them in the back.<br />And if Google-owned Motorola starts to gain share in the hardware business, the feeling (and tension) will only get worse.<br />
  • 14. By now, it's probably too late for Samsung and HTC to switch to another platform, so they'll have to smile and make the best of it. But still... having your software "partner" suddenly fire a missile down your throat can't feel too good.<br />Second, is this an acknowledgment that, in smartphones, Apple's integrated hardware-software solution is superior to the PC model of a common software platform crossing all hardware providers?<br />It certainly appears to be, Android's biggest weakness thus far has been its fragmentation: The combination of many different versions, plus many different customizations by different hardware providers, has rendered it a common platform in name only. To gain the full power of "ubiquity"--the strategy that Microsoft used to clobber Apple and everyone else in the PC era--Google needs to unify Android. And perhaps owning a hardware company is the only way to do that.<br />
  • 15. Third, how is Microsoft feeling? Is this a great deal for them...or confirmation that they're screwed?<br />So Google investors are smart to be worried.<br />Yes, there's a chance that Google could pull off a miracle here and transform the Motorola Mobility business into a direct competitor of Apple's--in which Google gets not only Android distribution, but super-fat iPhone-like profit margins to boot.<br />But doing that will be super-challenging. Motorola's current hardware team has displayed none of the magic that Apple's has. And the more Google tries to mimic that magic, the more Google's other Android partners will likely rebel against Google's competitive threat.<br />
  • 16. Fascinating PicturesGoogle + MOTOROLAMOBILITY<br />
  • 17. MotoDroid<br />
  • 18.
  • 19. Don’t be evil<br /><ul><li> Don't be evil" is the informal corporate motto (or slogan) of Google,originally suggested by Google employees Paul Buchheitand Amit Patel
  • 20. The sixth point of the 10-point corporate philosophy of Google says "You can make money without doing evil.“</li></li></ul><li>Conclusion<br />Summary: Google’s buyout of Motorola Mobility may not be one of the most expensive acquisitions of this era, but it will likely go down as one of this era’s most influential events in the tech industry.<br />Bottom line, It’s a bold move by Google. But one that raises a lot more questions and challenges than answers. (War Continues…)<br />

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