Google's Motorola Home Sale Is a Smart Move: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-12-20 Email Print this article Print
 
 
 
 
 
 
 


5. A more agile operation is important

The problem with Motorola when Google acquired it was that it was bloated and had too many moving parts. With this deal, Google is making the company a bit more agile and capable of handling market challenges. That’s a good thing.

6. Google doesn’t care about cable company set-top boxes

What in the world would Google want with a company that delivers set-top boxes to cable providers? Google is in the business of search, advertising, and mobile, and doesn’t really understand the set-top box industry. That it’s getting out of it is probably a good thing for the search giant and Motorola Home employees.

7. Google TV is already out there

Let’s not forget that in some ways, the services that Motorola Home delivers are competing with Google TV, a platform the search giant launched a couple of years ago with hopes of transforming entertainment in the living room. Although Google TV hasn’t proven popular, the search company is still trying to get it off the ground. Motorola Home didn’t necessarily play well with that.

8. Televisions are the future

Looking at the market and where it’s headed, it’s highly likely that eventually, set-top boxes won’t be required for living room entertainment. Instead, consumers will be able to access their programming and other information from their televisions. It was an idea Steve Jobs said he “cracked” in his biography last year, and something that most market observers believe will happen eventually. Google knows that and doesn’t want to preside over a company operating in a failing industry.

9. Lack of Adverting opportunities

Advertising stands at the center of all Google business opportunities. And yet, Motorola Home presented no simply way for the company to bring advertising to customers. So, Google dropped it. If nothing else, Google understands what its company is all about and doesn’t allow itself to get caught up in the wrong areas.

10. It highlights Google’s desire to sell, sell, sell

Google’s ability to get this deal done underscores an important point that can’t be overlooked: the search giant is ready and willing to sell any Motorola parts that it doesn’t deem necessary. That’s good news for third-parties looking to spend some cash and even better news for Google shareholders hoping the company will finally see a positive return on its Motorola investment.

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