Google: A Disruptive Force Gathers Momentum

@Bolaji-RIM is more likely to bought out either by Microsoft or by Google.

Apple is a most unlikely suitor as RIMs security/ENTERPRISE focus goes against the anti-thesis of what Apple usually represents.

@Barbara-For sure EBN is a great destination!!!

@mfbertozzi-

regarding your comments here,

"

They are very active with GoogleApps for energy-meter for example and MM now brings (potentially) an own hardware for new development.

"

Google has an interesting track record of a lot of botched enterprises which don't work out exactly as planned.The reason there is not much by way of strategy that goes into most of Google's proccesses.

Bye all...

@Bolaji @Barbara: Thanks for hosting this interesting discussion and looking forward to more. 

Moderators--you guys are the best! Thanks for making EBN a great destination!

bye for now/

Thanks again all, and to Bolaji. Please post on the EBN home page as well--see Bolaji's blog on this topic

This has been a great discussion

Looking forward to Bolaji's additional on this in his blog....

It's been a pleasure and you have as always been a fantastic audience and contributors. We have another interesting discussion this time on China and India on Thursday. Please join us at about the same time. Best regards.

Thanks to all the organizers for a great discussion..

Hopefully this adquisition improves the US economy market

thanks to Bolaji, Barbara and everyone; looking forward for blogs about!
-Matteo

thank you all for the great discussion.

Thank you, Bolaji, I hope to see a follow up blog on the topic.

thanks all and goodbye for now...

flyingscot, wouldn't that be something....  Things like that have happened....

Thanks, Barb, Bolaji, everyone!

Barbara.... thanks you very much.

My feeling is that we have only seen the first salvo from Google. The company will be making some major moves in the near future. Keep your eyes on what these will trigger at competitors. Somebody said you cannot afford to stand still in this market. Those who stand still get run over. Rivals will fire back soon.

Thank you very much Bolaji

for all the details on your answers.

@Flyingscot It's hard to do worse than the banks have

Thank you @Barbara and @Bolaji, for a very interesting disussions.  I look forward to reading more blogs about this topic as time goes on...

I would also like to thank everyone for jumping on today at short notice and for the excellent questions and feedback. I think today's move is huge for the industry and this is only the beginning of the kinds of debate we will see going forward. Major kudos to Bolaji for jumping on this topic

@Bolaji Ojo, RIM for Apple would bring IP. 

@eemom: that's quite right. 

With this acqusition Google will get complete access to the patents of mobile.

What about Google using MM handsets for secure financial transactions and then Google can take over from the banks of today

Google-ola

@Parser, I dont' see Apple buying RIM. I wonder, a lot at times what Apple will do with more than $75 billion in cash but I don't see them making a play for RIM. It's not in their nature. However the point you raised about RIM is one area we didn't touch on. RIM is in a very delicate situation right now and we might just be looking at the steady decline of a great company.

I feel its a gr8 move by google to acquire moto. This would give big energy to motorola group to fight with sony ericsson, samsung and apple

@HH: Yes, who knows. Things are spicing up and we can see some surprises coming up.

@Bolaj, Barbara, all: step from Google could bring an enlargement of their footprint for example on Internet of Things? They are very active with GoogleApps for energy-meter for example and MM now brings (potentially) an own hardware for new development. Any idea about?

Hi all--we are getting close to our end time--any last questions for Bolaji?

Apple keeps its architecture and software for themselves. This is their business model.

@Ariella: I would rather say the fear of becoming "has been".

Apple will NEVER open up their platform!

Facebook does not need to acquire HW manf as part of its strategy......

@Barbara, Microsoft pre-empted Google. It made two moves: (1) it struck an alliance with Nokia and agreed to shoulder the development cost for mobile Windows OS (2) It is striking back in court against Android.

@mario8a world domination -- isn't that what they're all after? Only they may couch in more reasonable sounding terms.

I don't see any reason why Apple would want to go towards the open model..

Bolaji--another excellent point--everyone has a lot at stake in this game.

@Barbara yes, teens do want the bells and whistles that supposedly add the coolness factor to gadgets.

will this be Google next step to take over the world?  I mean the mobile phone market?   with all the extra cash, they can re-invent MM.

Interesting move by Google. Do they see HW capabilty as key for their expansion in mobile solutions?

I can't imagine Apple ever opening up its platform.

@pocharle, The sun would wither first before Apple opens up OS to any competitor. It's been tried before and they cancelled a previous licensing agreement with third-party PC makers for the Macintosh. They aren't likely to make the same move again. At least for as long as Jobs and his disciples are around.

@SF: I see, It is no longer possible, at least for Now. But who knows? Everything can happen in the future

@ Mario - Tht's the more reason this Google move makes sense.  the world cannot survive on the iPhone along...

@jay: Correct.

DennisQ, I missed your note until just now:  I think this was primarily for the patents, based on what I read, and on the sense behind the fit otherwise.  (Though even if there is not a tight fit otherwise, it is an area of expansion that seems less likely to precipitate anti-trust action.)

eemom and Ariella--women after my own heart. I refused an upgrade because I didn't want to learn a whole new phone AFTER i fished the darn thing out of my purse. Mu 14 year old son is mortified, though

Apple opening up its OS.......not in the near future

@Jay-Bond, Thank you for bringing up the telecom end. Service providers are getting wary about all the legal wranglings going on and surrounding (primarily) Android. In fact, Verizon will not carry the next generation of the RIM Playbook because it hasn't done as well. The service providers help push these products to their customers and the German court action on Samsung put a chill on things. I believe in the UK and in Germany, Samsung's tablets have been temporarily taken off the shelves. The telecom service providers must also be happy about the Google deal with Motorola Mobility. Nobody likes a monopoly and Apple was beginning to corner the tablet market.

@Mario8, it's only a matter of time for Iphone with T-mobile since At&t bought them.

@Bolaji Do those same analysts ever see Apple opening up their platform at some point to counter Android's successes?

I do not believe MM Android implemetation is any better than the Asian handset manfs.

@HH:  "If Microsoft-Nokia deal seems ridiculous, how about Google-Nokia? Google could have made a play for Nokia but it didn't for the simple reason that Nokia already pitched its camp elsewhere" Oh, now I see it better. I was wondering if Bolaji was considering that Google might attempt to but Nokia. Sorry, my mistake. :) 

. Android's market share will dwindle quickly below 50% if Iphone launches on T-Mobile and Sprint next month.

Bolaji--to your point about Android--doesn't this make it even more imperative for Microsoft to make some kind of move?

Is there any study on Android's performance on devices manufactured by different vendors? Perhaps Google finds that Andriod has been able to perform best on Motorolla devices and this may be the reason they are considering to acquire Motorolla.

Samsung has a lot vested in Google (Android) winning in court.

@Barbara - I find that the selection has decreased since Verizon started selling the iPhone.  I have a Motorola Droid and I LOVE IT.  I hope this means good things for the product moving forward. 

@Barbara, I'm with you. The array of choices is really dizzying. Though I think my phone is only 2 years old, I wanted the simplest model available.

@DennisQ, Android on tablets will eventually dominate the market. Apple OS is not open and the market is too lucrative for the other manufacturers to ignore. They want a piece of the hefty margins and have determinedly moved in. They have had a few setbacks but I don't know of any single analyst who expects Apple OS to continue dominating the tablet PC market beyond 2015. The current projection is for Android to take over by then. However, this wouldn't happen if Android gets bogged down in courts. Samsung was concerned, rightly so.

@Bolaji [eco-system]: OK ! - Thanks

eemom--I'm sure you are correct. I'm already overwhelmed at the Verizon store, which is why I still have a three-year-old cell phone

DennisQ, I missed your note until just now:  I think this was primarily for the patents, based on what I read, and on the sense behind the fit otherwise.  (Though even if there is not a tight fit otherwise, it is an area of expansion that seems less likely to precipitate anti-trust action.)

@SF: OK!

@ Barbara, I too would be curious to see how this relationship affects the major cell companies

@Susan: coming back to tablet, we are assisting to new players, Acer, for instance, are coming to play the game. Why Google didn't evaluate to acquire one of them (or one of their B.U.) instead of MM? Is it a matter of own patents, brand, or...whatever?

@Barbara - I can't see this affecting the carriers except maybe giving them more phones to add to their portfolio.

@HH: let me find it.

@TaimoorZ, I agree Nokia should have continued developing its own OS but the company chose to adopt Microsoft Windows. There's no going back now. It has to jump in all the way.

How about Apple buying RIM?

I'm not sure why people keep bringing up Nokia as a potential acquisition target, I think it'd be more likely for someone (not Google) to snatch up RIM cheap.

@HH: Unless I misunderstood, Bolaji said something about it. 

I think Google started acquisition war. We are to expect more in very short future. 

(lost my connection for a moment....)

@mfbertozzi, Google already has an eco-system strategy. Android is part of that eco-system and so is Google Chrome OS. Here's what a top Google exec had to say: "The eco-system was under threat" from patent lawsuits. This was the main rationale for purchasing Motorola Mobility. They have to continue protecting the eco-system. Apple has its eco-system and knows this is its biggest competitive weapon.

Anyone have input on what this may mean for the carriers, such as Verizon, AT&T, Sprint?

@Bolaji: Now I see what you mean. 

@Bolaji: The idea of Nokia coming up with a better OS version on it's own sounds a better move than it being sold to Microsoft..I know the deal with Nokia and Microsoft is on, but again no one's buying anyone in that..it's collaboration for a new product

@Bolaji, just curious, obviously Android on tablets hasn't been as successful as Android on phones (for various reasons), but do you think Android-based tablets will eventually dominate the tablet market? Or will they always be #2 to Apple? Or even further behind?

@Porcharle: I agree

@SF: Google buying Nokia? How can Google handle two big and rival companies?

@maio8a Typical since most people are experiencing shock from teh acquisition. But it will come back to the pack once the sentiment settles in

Ariella, it might just be a way to communicate their intent to become a standard or to remain a standard, and so make people like you and me more confident in buying into their universe of products.

@Bolaji: Do you see Google attempting to buy Nokia? 

@Susan, I don't expect Google to roll out a separate tablet other than the ones Motorola Mobility will continue to develop. I would think a Xoom with the Google logo on it would be fascinating and a lure for customers but that is a marketing decision.

Well said, Bolaji

@eemom: Right!

Shares of Motorola Mobility, which focuses on smartphone and TV set-top boxes, jumped 59 percent

@Barbara, Thank you. That says it. Software rest on hardware; hardware without software is a door stopper. You need the interaction from the two and you need the nice, plump margins from software to stay profitable. You also need the nice look of the hardware to reel in the fish.

@Rich but does that mean a billion or bust? That does seem to aim fairly high.

Has there been any news about what this means for Samsung? In the past, Google has worked with them fairly closely on phones and chromebooks... I'm sure this doesn't affect Samsung all that much (it's not like they're losing Android or anything), I'm just curious if the the topic has already been discussed beyond Google saying, "oh we checked with Samsung on this, they're good with it."

@Hospice, I agree but Motorola was already using the Android platform, that makes them more attractive

@Bolaji, what Schmidt said makes a lot of sense, of course. How do you see a Google tablet in the market? 

@Bolaji: thanks for your deep explanation earlier. I would like to come back on one specific point: in order to increase new lines of revenue, why Google is not adopting an "ecosystem" methodology and strategy as Cisco successfully did in the past?

@eemom: It makes sense. But you don't buy only companies that are doing well, though. It is a matter of business strategy

@TaimoorZ, What's next for Nokia? Trundle along or make a big move. Nokia needs more than just another pedestrian transaction. The industry is consolidating. Hardware is joining software. If you only make hardware in today's market you are a walking dead. You need more than just a great looking product to win. Interface matters as the top dog in this business has clearly demonstrated. Apple is a winner today not because of what it products look like alone but because of the guts, the feel and the software.

@HH: Of course. So many things can change. 

"...at least a billion people will use [or] we're wasting our time."  Well, if I'm worried about making sure I'm buying into a standard, then that attitude pretty much helps me sleep better.

mfb and all--I came up in this industry from the hardware side, and I've always believed that you cannot have software w/o hardware and that anyone saying "hardware is passe" was mistaken. Perhaps this validates the argument that software cannot exist w/o hardware. That software is the added value is not in dispute, but I think a pure-play software model is becoming more challenging--maybe becuase of the licensing model.

@Hospicw, Because the Google software is much more successful now and MM is not struggling as much as Nokia. 

Bolaji, what can we expect for next year from Google? increase market share on the mobile phone industry? perhaps?

If Microsoft-Nokia deal seems ridiculous, how about Google-Nokia? Google could have made a play for Nokia but it didn't for the simple reason that Nokia already pitched its camp elsewhere. A transaction between Microsoft and Nokia is not that farfetched. As noted earlier I will expand on this soon in a blog.

Google's Android has a far stronger base and reputation than Windows Mobile..nor can you compare Nokia with Motorolla..

Yeah I don't really think it makes any sense for MS to buy Nokia... MS has already kind of failed with that type of thing (remember that Kin thing, I think it was called?)

@Susan Fourtane, MSFT buying Nokia may resurface becasue of the Google's deal 

Thanks Susan

@SF:I see, maybe for NOW!

Google Inc will buy MM for $12.5 billion to bolster adoption of its Android mobile software and compete with smartphone rival Apple Inc.  

it  seems to me there's a possiblity that Microsoft would do the same.

@Susan Fourtane, Google is primarily in the software business but the company seems to understand that it needs the double-play advantage of hardware-software combo. Companies that play in both segments learn a lot from each operating unit that can be used to leverage competitive advantage for the the other. Google chairman Eric Schmidt has reportedly said: "If we're not building a product that at least a billion people will use we're wasting our time. How can you be a company that wants to change the world if you don't have at least a billion people using your stuff." This isn't just about software. This is also about hardware. Google's current products show up online only and on somebody else's hardware. Imagine the PR & marketing advantage from having people show up with a cool Google mobile handset or tablet PC!

@HH: Not long ago I asked a Nokia spokesperson if Microsoft was going to buy Nokia. She said that won't happen. 

@eemom: Why? 

I like the Google/MM connection more than Mircrosoft/Nokia.

Microsoft buying Nokia seems kind of ridiculous..I don't see what either of them can get anything from this deal.

@Bolaji, Barbara, all: this announcement is depicting for taking leadership hardware is mandatory. Anyway this acquisition is exactly the reverse Nokia did as strategy: hw manufacture has created a jv with software. The reason for moving Google on MM acquisition for patents is appearing quite poor...are there other key factors to consider?

Bolaji--excellent point about Microsoft/Nokia. I saw in the WSJ that Microsoft is struggling with the move away from PCs into smartphones and tablets. They definitely have skin in this game

@Bolaji: According to the last I heard from Nokia concerning a possibility of Microsoft buying Nokia, Nokia denied it quite clearly. 

@Bolaji Ojo, yes I can see that after Google's purchase MS will buy something too.

@Bolaji What would be Nokia's benefit for being bought out by MSFT?

Nokia would be a might pill to swallow but it cannot be discounted.

@Bolaji: According to the last I heard from Nokia concerning a possibility of Microsoft buying Nokia, Nokia denied it quite clearly. 

@SF: "Is there a possibility Microsoft may buy Nokia?" 

@ Bolaji, Does Microsfot has enough cash to buy Nokia?

Thanks mfb. I tend to look at it as smartphones vs. tablets, but the mobility aspect is really what distinguishes the players. Cannot be understated

While Google does not have buying clout now, hardware vendors should know that they will in the future and support them accordingly.  This is not just any new no-name coming into the H/W business

@Parser, Microsoft will only be tangentially concerned. They were hoping they could stem Android's growth by creating a legal minefield but that won't happen now. The next shoe to drop, which I plan to address in a coming blog is the Nokia-Microsoft angle. Microsoft is both a hardware and a software company. Nokia is moving closer to Microsoft and has dropped the Symbian OS in favor of Windows. Is there a possibility Microsoft may buy Nokia? Valuation won't be a concern. Microsoft has the dough and Nokia is trading at a discount today. Why not?

Hi, Barbara. I was interested in the announcement as it seems to be sort of a patent deal. 

Thanks Bolaji. I agree--Google has cachet, but not a lot of component buying clout. I wonder if it might influence design more, now that it "owns" a hardware co.?

It also may be a benefit from the productions standpint--as you point out, knowing the Android platform is secure means componetn makers will contnue to develo for the platform and there should be no supply cconstraints

*planned ...

excuse my typo

I think the change will happen at the end of 2011, was this date pallned based on the customer demand for the holidays?

@taimoorZ It's true that companies do have different styles, so if one takes over another one, some change in the way it relates to its suppliers is inevitable.

@Barbara: Yes, they do, but other segments are within Apple portfolio (larger than that one owned by Google). As consequence, imo ;-))), for certain aspects are doing a "mismatch" game...

@Barbara, I don't know that it is fear as much as arrogance.  Apple doesn't think anyone else can design a decent product without infringing on ts patents.

@Bolaji: That's good thinking, and the guys at Apple should understand that 

I believe Google will have a whole different way of dealing with suppliers as far as Supply chain is concerned..

If MM procedures and systems change as a result of adhering to new Google policies there might be flow through to MM suppliers.

@Barbara, I don't see any immediate changes in the supply chain. Motorola is pretty strong in terms of its sourcing strategies and Google doesn't add much purchasing power to the union. However, what the relationship does is to strengthen companies in the supply chain who might have been thinking some of the Android licensees might have to close up shop in the market sector because of the growing pile of lawsuits. If Android survives and thrives then the Samsung, HTC and other licensees and their suppliers can be sure of a profitable future.

@Parser Let's hope not. I want MSFT to stay viable. A 3 ring circus is always better

I agree that market battles should be won by the best product design and not by patent litigation. Does anyone think Apple's moves indicate a chnage of style from the Jobs days, or does this reek of fear?

@Barbara, good question!

Motorola was the company that lost all that money on Iridium, so maybe they need new owners.

@Parser: That is the least thing we are expecting them to do

Bolaji--from the supply chain standpoint, do you see any chnages? My initial thoughts are no--MM has that pretty squared away--but will Google have any impact on supplier relationships?

@Hospice_Houngbo, Apple is definite to fight back. The company seems though to be forgetting that it's biggest weapons are its design capabilities. It wins when it designs the best products. The courtroom litigations are a distraction and they detract from what Apple is. They also create a public relations problem for Apple. Customers want them to win on the basis of their product and not on the basis of tying up rivals.

Apple and Google with MM will leave MS and Nokia in dust. 

Apple should be concerned and they should plan on having a formidable competitor in the market

@Jay_Bond: We will see. 

Google is the maker of the Android mobile phone operating system software,  but has been hampered by a lack of intellectual property in wireless telephony

Wow this should be exciting from Google's end

Hi Susan--love to hear your thoughts on the announcement today by Google

Hi, HH! :)

@Hospice_houngbo Apple my fight back only by allowing Flash on iPad/iPhone.

Hi, SF!

@mario8a: I don't think Apple really needs to be concerned about it..

mfbertozzi--Don't they both target smartphone and tablet markets? (This is my weakest market, so that may be a dumb question)

;-)

@Hospice, I don't think Apple needs to fight back at the moment. Especially since I don't know if they are on even playing surfaces at the moment. 

or...Maybe Apple will double its litigation efforts.

Google needs to leverage it strength in internet and link its MM biz into that more seamlessly than Apple.  At the end of the day it is data/info that is the profit maker and not low margin hardware.

Hello. So I found you.

Good question, Hospice.... Indeed, how will they fight back?

@Pocharle, We can expect more patent-related acquisition from Google. The company is by no means done with regard to protecting its platforms and it is expanding these dramatically. Larry Page said during a conference call: "Even with this deal, we will have enough resources to pursue substantial major deal." I believe the company will do exactly what it promised.

Does Apple has a bigger challenge now that Google will be managing MM?

Thanks Bolaji. This makes a lot of sense and Google is a brilliant strategist.

Apple may dumb litigation battle and refocus on new innovation.

I wonder if Apple will try to fight back and how?

@ Barbara: well, we are matching Google and Apple, but at the end I am not convinced it is right. Market they address, imo, is different so maybe Apple hasn't a real need for making a next step and maybe they are in condition to take time and plan it at the right moment.

Looks good for MM in the near term but I have seen many similar deals that fizzle out when the hype wears off.  So much depends upon how the sen mgmt gels and how cohesive a strategy that can be developed.  

What will the answer be to Apple's next salvo?  More lawsuits?  More acquisitions?  Maybe even more and better products?

The Xoom had good initial buzz--why didn't it do so well? Ipad? Galaxy?

Do MM acquisition include tables?

@Bolaji What do you anticipate Google's next move will be seeing how agressive they have been?

From the shareholders point of view, MM board will be happier and to expect rise in price of shares in stcok market.

@Barbara, The other Android licensees should feel a bit more secure. Microsoft wants to charge up to $15 per product for each Android hardware. This is a killer for any product. If Google can assure them the patent problem will go away then they can focus on being competitive with the hardware. All of the major Android licensees are in a panic currently. These include Samsung, HTC and Motorola Mobility itself.

thank you for your answer Bolaji, very well explained.

Seems like MM folks really made out on this deal.  Nothing better than a buyer who has deep pockets to right what ails the company.

Bolaji. what can we expect of MM future?

Aother good point eemom. What will be the next step in terms of the hardware platform? What will be the answer to Apple's next salvo?

@Mario, Motorola needed Google even more than Google needed Motorola. Once a company begins to lose traction in this market it is tough to regain the footing. Motorola's Xoom hasn't done too well but I can imagine the additional cachet the company will gain when its products (hopefully) starts rolling out with a Google icon on it. Furthermore, Google is a cash machine. It has more than $40 billion in cash and continues to spin off more money than it can use. It hasn't and doesn't need to pay dividends because its shares continue to do very well. Motorola Mobility needs to be able to compete without watching the bottom line for a few quarters. Google offers it the opportunity to do this.

It's good news for companies that license Android, I'd expect.

Sanjay Jha, CEO of Motorola Mobility, said this transaction offers significant value for them. We are discussing mainly on Google, what about MM?

I agree that this move elevates Google place in the market.  Time will tell how Google will invest in the hardware business and how they will advance Motorola's products.

Android grew out of its "openess".  That will be affected if Google now owns a major consurmer of its OS.

The Motorola Mobility deal may represent a victory for activist investor Carl Icahn, Motorola's biggest shareholder. He has urged Motorola to consider splitting off its patent portfolio to cash in on surging interest in wireless technology. As of July, Icahn held an 11.36 percent stake in the company.

I think this purchase helps to stabalize people's concerns of Googles viability in the market.

They wull feel rather nervous now.

I think that Google's action is the same as IBM in 1980: released architecture to competition and still produce computers. Android will the next king OS. 

To get back on topic, what does this mean for the otehr hardware makers that license Android?

It is not obvious that Google will make a great hardware manufacturer.  If however MM is a great hardware developer / manf and if Google is OK funding MM but keeping hands off then it might be good deal.  However Apple is such a tight systems company (HW and SW) that it will be hard to compete.

@eemom, Absolutely not. Google is actually securing the licensees ability to continue developing products for Android with the acquisition. The company spoke with the five major Android licensees before announcing the latest transaction and they were happy at the development, said Larry Page, Google CEO. Why would they be? Nobody wants to develop a product that gets stuck in a courtroom.

Understandably, companies are diversifying to remain competitive. The pick up of a hardware company to balance google's software position is a good idea on papaer, but would it enhance google's image or simply drain it of life?

Hi Guys..Sorry I'm a bit late..

Google is so youth-oriented, though.  I'm afraid that would make the discrimination in the industry against older engineers even worse.  But it shouldn't hurt the availability of product, though, so from a buyer perspective, I'd welcome this acquisition.  If anything, stability of product availability and support should be enhanced.

Good question eemom.

@Arelia, I think RIM is not in their best shape right now, so it will be a good idea to start looking around.

Bolaji, how this adquisition impact the  Mobile phone bussines for MM?

@Jay_Bond I think RIM has been hurting for a while now

Everyone was surprised at this decision by Google but the company had previously indicated it needs to expand operations beyond its traditional area. It is competing now against some of the biggest companies in the world and the more it expands onto their turfs the angrier and more competitive they become. Google has Chrome OS and Google Office, both of which represent direct assaults on Microsoft. Android was a challenge to Apple OS.

@Bolaji -Do you think Google's move into the hardware business discourage other hardware vendors from licensing Android?

"If you want to compete against the globe's most successful technology company then you need to play everywhere it does."  This surely makes sense. 

@Bolaji Great point

It seems like this purchase is going to hurt RIM even more.

@Bolaji, will Motorola Mobility remains as brand name for the future mobile phones and tablet PC?

@Bolaji, that makes sense.

If I were an engineer at RIM I would now apply to Google. :) 

@Arelia - could be, however it could be an strategic move to pump some money into motorola core bussines.

@mfbertozzi -- Yes, Google is moving away from its software-only background. This is an important distinction and the second reason why this deal makes sense for the company. What is Apple, afterall? It is both a hardware and a software company. If you want to compete against the globe's most successful technology company then you need to play everywhere it does.

@Parser: I agree and going further, including first aim from Google to deliver broadband wifi, next field for them could be wifi router market.

I read that Google was going to be pretty "hands-off" in the way they run Motorola Mobility.

@eemom, The transaction protects Android because of the patents that Motorola Mobility will contribute to Google. The company can evolve Android away from the patents that are currently in dispute and assure Apple, Microsoft and other disputants have no grounds to contest the validity of Android. Remember, Google licenses Android. If the licensees are concerned about its legality they will seek alternatives.

OK. Got the patent part. Doesn't Samsung also make a Droid, and LG?

Boosting employment would be a great plus if Google plans to invest in the business, which hopefully they will

I frankly think this helps Motorola Mobility a lot. 

It looks like Google is changing to a hardware company as well. They supposed to release laptops running Chromium 

It is best acquisition of the year 2011. I think best move ever - a knight move which may perhaps sends jittery signal to Apple and others

@mario8A so this is one stock that is doing well despite the market's freefall

Just to be clear. What is the potential patent infringement faced by Google?

Hello, Bolaji, what would be the relationship of this adquisition and the Nortel patents?

The question is: Will that really protect Google from patent battles?

How would this protect the Android Platform?  It is still an open platform that Google is licensing out.

@Rich but think about how that could boost employment!

Motorola Mobility will join Google with 7,500 patents. Motorola invented the mobile handset and it has thousands of patents related to the wireless market. Apple's latest victories against Samsung in a German court and in Australia have shown the entire market the next battlefront in this market is in patents. Without a strong patent base support for Android could easily erode.

Isn't Motorola already on teh Android platofrm? Were thery going to comepte with Droid?

We're going to need two lawyers for every engineer soon...

In its biggest deal to date, Google said it would pay $40 per share in cash, a 63 percent premium to Motorola Mobility's Friday closing price on the New York Stock Exchange.

Google is buying Motorola Mobility for $12.5 billion. This in my opinion is first a defensive transaction. The main driver for the acquisition is the need to protect the Android platform from patent litigation. Android represents a next-generation revenue driver for Google but it has also come under tremendous pressure from Apple.

@Barbara, Bolaji and all:
I would like to start with two a very basic question: does this announcement mean Google is changing its strategy moving on hardware ? We have discussed about battle for leadership in mobile involving Google, Apple, Microsoft . Right now scenario's competitors could change?

Hello, good afternoon to everyone.

Sorry, I just tried twice to post some opening comments but they didn't show up.

Hi Everyone

Hi Everyone!

Hi Bolaji--Can you give us some background on this first?

Good afternoon and thank you for joining us for this Live chat. I have a few opening comments on the transaction announced today by Google. We'll take questions but also please feel free to let us know your own thoughts on the transaction.

I'm a little bit surprised, but we know that Google is getting very ambitious

@Jay, as far as Google "saving" Motorola, I really don't think Motorola was in as tough as shape as RIM or Nokia... I actually like some of what Motorola is doing with their hardware, and I can't say that for RIM. And Google acquiring Nokia would obviously make zero sense...

Hi Barbara and Bolaji

Hello, Barbara, and welcome, Bolaji!

hello Bolaji

Hi Barbara and all, we have assisted to a surprise announcement today.
-Matteo

Hi Everyone, and thanks for joining us. Today, Bolaji Ojo--one of the most qualified people I know to beging this discussion, will fill us in on why this is such a momentous event.

Please welcome my colleague, Bolaji Ojo

I'm a little bit surprise

Patents seem to be key, plus it's an acquisition that might be less likely to raise anti-trust issues, no?

Motoroal has thousands more patents than Nortel ever did.

or Google is so cash rich it is hurting for better ideas on how to spend its cash

I was very surprised, but I think it is a great move

Hello world!

Hello

Hello

Considering Google's prior interest in Nortel's patents, not too surprising.

@RichK, that's a good point about the patents, do you think this was more of a move for the patents and the rest of the business was just bonus? Or the other way around?

Very surprising news to me, but running hardware business is different.

Hi all,

Thanks for joining us. In aminute, I will tuirn this over to EBN Editro in Chief Bolaji Ojo, who will begin out chat today.

Google stock still down 2.5%

Anybody else out there surprised by this though? I really didn't see this coming. Also, amazing to think that if this goes through, it'll be Google's biggest financial acquisition yet...

If anybody can, the company with the deep pockets probably has a good chance.

I am curious with RIM, Nokia, and Motorola all having serious issues, can google save Motorola?

MM stock up 50%

Well, look how much Microsoft and Apple wanted to pay for Nortel's patents.

Completely surprising news, at least to me. Do I think it's a good move? Well for MM shareholders, certainly! And yes, probably a smart move overall.

I wonder if Google is not running too fast than it should be.

Might be a similar offensive strategy to Apple wrt slugging competition with patent infringement lawsuits.

Sounds like a good defensive move for Google, to protect itself against patent claims (by their buying Motorola Mobility and their patents).  Fortune magazine reported that Google said this is outside Google's core competency, so Google will run MM as a separate company, but competency can be learned.  Also, I expect this will add stability to MM's offerings, because it should put Google's resources behind a constellation of Motorola products that the market is familiar with.  Maybe the move will help ease fears of product instability.