Motorola Mobility to be acuired by Google

Google intend to take control of Motorola Mobility in a deal worth $12.5 bn (usd)

If the sale goes through this will be the dawn in a new era for Google powered Android Devices. Google will not only be the software provider, they will also be the hardware manufacturer. To an extent they could be seen in many ways like apple. Delivering a device with their own opwerating system.

Some may worry that this may well be the end for Android in its current open source form, but Google have given assurances that making Android closed source is not within their business model.

Keeping Android open source makes good business sense for Google. By having an open platform Google can continue to enjoy a growing market share within the mobile sector.

Motorola under control of Google may well be in a great position to generate some very impressive Android based devices. Delivering an Operating system that has been specifically tuned for the device hardware may well be enough for Motorola to regain some market share that it has lost in recent years.

From Google's point of view it will be handy to have a device manufacturer that will build phones only for Android. This helps to secure market position, and prevents churn as a manufacturer moves to a rival OS such as Microsoft Windows for phones.

 Motorola Mobility has lost market share in recent times, and it will be interesting to see if Google intent to make direct profit from Motorola Mobility through its key business areas, or if they will simply use Motorola to encourage user uptake of Googles mobile products.

By having control of Motorola Mobility, Google are in a great position to be able to 'enhance' the devices by bundling Google products. Google's business model is mainly advert driven. Its a bit of a numbers game, but to put things in simple terms.. more users equates to more advert revenue.

Another aspect to be taken into account is patents. Motorola Mobility owns a large number of patents, many relating to the mobile market. This is somethign any company trying to be competative within the mobile space could do with in its 'warchest'

So will Google turn around the fortunes of Motorola Mobility by allowing them to deliver the next generation of Android phones or will they simply use Motorola's customer base by turning them into Google users. Only time will tell, but I wouldent be surprised to find Google trying to cash in on some of those patents.

Mack.