Enterprise Mobility: Google, Motorola Merger: Winners and Losers From the Deal
Google's $12.5 billion bid for Motorola Mobility shell-shocked a mobile sector already polarized by burgeoning litigation against Google's Android open-source operating system. The search engine giant primarily wants to get Motorola's 17,000 patents (and counting) to protect itself and Android OEMs from the multiple lawsuits filed by Apple and Microsoft. Google is also gunning to own one of the top U.S. handset makers, which thrust Android into mobile industry prominence with the Motorola Droid, backed by the powerful marketing of Verizon Wireless. Throw in the fact that Motorola's set-top box business is used by major cable services, such as AT&T U-Verse, and Google will gain a potentially game-changing mate for its Google TV software, which is also Android-based. This deal is all about Android. Let's assume the deal goes through, that it passes muster under the watchful eye of antitrust regulators at the Justice Department and the Federal Trade Commission and that Google and Motorola a year from now find themselves wed in holy mobile matrimony. Here are the top winners and losers from this mega merger.
Motorola would be the top winner in our opinion. The $12.5 billion figure is a 63 percent premium over the company's share price. Motorola has been struggling to keep up with Samsung and HTC in Android handset innovation. The company enjoyed fine Motorola Droid and Droid X launches, but has lost some luster after the Motorola Xoom didn't sell well and saw its 4G model delayed. The Droid Bionic 4G smartphone was also delayed. Getting Google to pay that price for patents and phones is a magical feat. At the least, it shows CEO Sanjay Jha's ability to capitalize on a company desperate for patent protection.