I found out yesterday that Google is buying Motorola Mobile for $12.5 Billion, reportedly for patent reasons. I heard an analyst on the radio this morning say that acquisitions of this type only succeed 20% of the time, while the other 80% of the time it ends in failure. The analyst said that if Google shuts down Motorola then it will be a a very good thing for Android, but if they keep the company going it could be the end of Android.
Now, Google has said that they plan on keeping Motorola operational, but they plan on keeping themselves very distant at the same time. Motorola, for example, will still have to pay Google for the use of the Android software, and they will still have to put in a bid for Nexus.
Samsung reported yesterday that they welcome the purchase and Apple has no intentions of changing their game plan.
I’m not an industry analyst, or an expert by any means so I can not give an estimation on what will come about, but it will be very interesting to see how this will effect the smart phone landscape in the year(s) to come. I would love for Windows Phone 7 to take over the playing field and become the dominant player, but I don’t want it to come about because Android fails due to this acquisition. I want it to be because people start seeing the great things Microsoft does for the country, and because they fall in love with the software that Microsoft produces. Besides, competition drives innovation, creates jobs, and keeps prices competitive.
There is nothing really profound or meaningful in my post this morning, I just wanted to share some of my thoughts about the deal.