Now that Google has officially paid its $12.5 billion to take over Motorola Mobility the fun starts for the search giant. It can focus its efforts on improving Motorola Mobility, seeing once and for all what its now taking over and hopefully find ways to unlock value that the companys former management just couldnt.
Moreover, Google can set out to justify to its shareholders why paying so much cash for a mobile firm really makes so much sense. It will be a challenge that should reveal how smart Googles top executives are as investors and managers.
However, as Google considers its plans for Motorola Mobility, the company must be careful. Leaving the mobile firm alone is, of course, not a good idea, but trying to do too much is also a mistake. At this point, Google must make decisions with scalpel-like precision to ensure that its shareholders dont end up questioning its acquisition. Five years from now, Google should endeavor to have its shareholders look back at the acquisition and say that it dramatically improved both Google and the mobile marketplace its competing in.
Read on to find out what sort of things the search company should do with Motorola Mobility to unlock its value and justify its high price.
1. Deliver tablets
Although Motorola was one of the first Android vendors to deliver a tablet with its Xoom slate, the company hasnt made a mark in that space. The time has come for Google to help Motorola make that mark and deliver tablets. To not do so would be a mistake.
2. Distance itself to appeal to vendors
One of the biggest concerns regulators had with the acquisition is the possibility of Motorola and Google getting too close and hurting other Android vendors. The smart move for Google would be to maintain just the right amount of management distance between the companies and show that its not giving Motorola any preferential treatment.
3. Remember patents
One of the main reasons Google acquired Motorola was to have access to its patent portfolio. With those patents, Google can do a much better job of protecting itself against Oracle, Apple and others and maybe even help its Android partners better defend themselves. Its a big opportunity for Google.
4. Think about Motorolas software prowess
Although Motorola was using Android in its handsets, the company was able to modify the operating system with its own software skins. Google should keep that in mind and do its best to take advantage of Motorolas software expertise. Who knows what its developers could come up with?