We're hiring

We love digital - Call
03332 207 677
and say hello - Mon - Fri, 9am - 5pm

Call 03332 207 677

James Perrin

Is Google’s Motorola Acquisition a Message to Apple?

15th Aug 2011 News, Industry News, SEO, Mobile Search 2 minutes to read

Google LogoGoogle announced today they have purchased Motorola Mobility for $12.5 billion (£7.7 billion) according to reports (Source: BBC). If approved by regulators, this will be their biggest purchase to date and represents a significant step forward for Google who aren’t shy of splashing the cash on acquisitions.

Their latest financial figures indicate they’re in a position to make purchases, either to beat competition or to evolve their own services [See: Despite Spending Big, Google Posts Huge Q2 Profits]. This latest purchase is a definite case of doing both those things, as they turn their attentions to a mobile market which, despite the growth of Android, is still dominated by Apple.

Some quarters have raised the issue of Google paying an over inflated price. Motorola Mobility’s share price soared to a whopping £40 per share or $12.5 billion in total, which is a massive 63% over the share price they recorded on Friday. However it isn’t as if Google couldn’t afford to make the purchase, and for them it’s what the deal represents going forward rather than this initial payment.

For example, it will give them the perfect opportunity to dent the mobile share market, currently occupied by their biggest rival Apple as well as Microsoft, Nokia and the recently faltering RIM who make BlackBerry devices.

However Google are no strangers to this market as their Android operating system actually makes up about 40% of the market, compared to Apple iOS’s 26.6% and RIM’s 23.4%. The Android system represents a third-party deal with hardware providers such as HTC, Samsung and others. It’s the dominant operating system in the US, but Google clearly want more, and want to develop the Android platform whilst designing their own hardware.

For Motorola Mobility, the deal “offers significant value for [their] stockholders and provides compelling new opportunities for our employees, customers, and partners around the world” according to their CEO Sanjay Jha. For Google their CEO Larry Page said that “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies…together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners, and developers.”

In an industry that is highly competitive, it’s a bold move from Google, but nonetheless it’s a clear message to their rivals and perhaps Apple most of all. It looks like they will aim to provide mobile systems with a tight integration of Android based software and new Motorola Mobility hardware.

Whilst this is an exciting move for both Motorola Mobility and Google, it is also great for consumers too; already there is talk of joint Google Chromebook and mobile devices. That is assuming the deal is approved by regulators, in which case Google believe it could be completed by late this year or early 2012.

Share this post

What do you think?

  • aspect-ratio
    Dan Rice

    What is the Difference Between Owned, Earned and Paid Media

    Search engine technology is evolving, and so is the digital marketing industry. The more experienced professionals amongst you may remember the days of gleefully stuffing keywords into your copy to boost your rankings, blindly spamming strangers to join your email lists and easily securing media coverage for your thinly veiled advertisements.

    (more…)

    Dan Rice
    @iamdanrice
    16th Aug 2018
    Content Marketing
  • aspect-ratio site-speed-blog
    Ross Momtahan

    A Guide To Page Speed Metrics

    Site speed is an important area of website optimisation that people working in the world of Search Engine Optimisation are becoming increasingly concerned about.

    With Google’s site speed update being rolled out to all users on July 9th, now is the time to audit your site speed if you haven’t done it for a while. (more…)

    Ross Momtahan
    20th Jul 2018
    SEO

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?
  • We’ve got some really cool stuff we want to share with you. So you don’t miss out, let us know which of the following you want us to email you about going forward:
  • This field is for validation purposes and should be left unchanged.