Matthew Staver/Bloomberg NewsLarry page, a co-founder of Google, links, and Eric Schmidt, the former Chief Executive in Sun Valley, Idaho, in 2009.In 2004, Eric E. Schmidt, Google's then proclaimed Chief Executive, "we don't go in the phone companies, but we make sure that Google is on those phones."
Less than a year later, Google but has the opposite.
Described in his book "In Plex" Google Android, Steven Levy, soon acquired the mobile operating system and began the construction of a telephone company that has since then developed it into a juggernaut.
Acquired after Google Android 2005, still plans for the telephone business for several years there downplay. It was not until summer 2008, that Steven p. jobs at Apple really took notice and went to the Google headquarters, to review the prototype phones.
Google's useful diversion: 2006, Mr. Schmidt was a Director of Apple and Google was as an important partner to Apple. But when Mr.. jobs finally saw Google phone, he was "angry" and "concluded he was a victim of fraud," according to Mr Levy's. (Mr. Schmidt said that he never Mr.. jobs wrong.)
This story is might be helpful in assessing, Google's $12.5 billion for Motorola deal mobility, makes Android phone handsets and TV set-top boxes take into account.
Google is positioning, not as a means of actively to buy its way into the mobile phone market, but to buy - some 17,000 of them as an opportunity, Motorola's portfolio of patents the deal.
During the company's conference call with analysts and the media Google executives calling with full of Motorola's patents discuss enormous value that (it mentioned this 24 times); still, she spoke about their mobile phone business almost in hindsight.
Google focus on patents replacing the handset business almost makes much sense: Google Android operating system is "open" for a long time from a large ecosystem including Samsung and HTC cell phone manufacturers.
These companies invested in the Android-based activities and contributed to billions of dollars, that Android more popular than Apple's mobile operating system. This mobile phone manufacturers have now to compete against Google.
"Google can not admit in public, what they have to intend to do is proprietary finally Android to make," said Tavis McCourt, analyst at Morgan Keegan equity research. Despite Google's protestations, Mr. McCourt believes that in two to three years - after Motorola increased its distribution channels in Europe, where it is weak compared to Samsung and others - will Google seek, start, close the Android platform or begin the construction of special features on their own phones that are not his "partners"
And even if Google Android was able to maintain as an "open" platform, a special phone with bells and whistles could still its current manufacturing partners trench battles. For consumers but a proprietary phone finally would vertically integrated Google Android system, create an end-to-end system, allows to better compete, which long has been announced, because Apple has it, against the iPhone, all aspects of the phone from software to hardware to control.
In fact, can impact this textbook research in motion, who, maker of the BlackBerry, QNX Software systems, a software unit of Harmon international a little more than a year ago, Google main message p.r. in adopting the Motorola mobility. At the time who said transaction buy RIM, that it was the car and infotainment business to enter, was a strength of QNX QNX. RIM plays down talk that as RIM next-generation operating system QNX can be used. Of course, the messaging was a bit disingenuous: QNX builds now RIM operating system.
"she could say it not because RIM developers developing for BlackBerry would have halted current operating system,", said Mr. McCourt.
Google News can also be necessary to win approval by regulatory authorities, who might try to block the acquisition, when any number of mobile phone manufacturers, which came out against the deal. On Monday who came all the Android mobile phone manufacturers to support the business on the basis that it would protect Android against potential patent litigation.
None of this is to point out that Google's stated desire to have that Motorola mobility, is partly untrue for its patents. Google has been clearly involved in an effort to buy mobile phone patents for the last year: a bidding war lost last month about 6,000 patents from bankrupt telecommunications maker Nortel Networks buy it. (Apple and Microsoft led a group who outbid them.)
Motorola's patent trove should fend off suits from competing manufacturers Google because Google now 17,00 patents from Motorola in its domain would help.
But there is no denying that Google's new Chief Executive, Larry page, long already has a longing for the mobile phone business and this acquisition can the height of his ambitions. Mr page, eventually became the Executive, who personally pursued the acquisition of Android and was his biggest supporters. And he pressed Google in recent years at a time in the Federal Republic of auctions for wireless spectrum to compete when others were zögernder - and in some cases, it was prepared to pay range too much.
"He was the man behind Android," Mr levy said in an interview. "Larry is a large ambitious guy;" "It becomes large cube roles."
If there any question about Google's motivation to own a handset maker rather than just a portfolio of patents, concerns the following: InterDigital, a licensing, has some 8,000 wireless patents and patent applications processed, was a 10,000 companies has been to the auction. Many industry insiders were sure that Google was Ernst on acquisition of a portfolio of patents, would be InterDigital his goal. Market value of the company is only about $3 billion and does not come with the baggage of Motorola mobile phone business.
Mr. McCourt said "If this deal only to patents was, Google IDCC would have bought", referring to the InterDigital stock ticker.
Guess what happened on Monday shares of the InterDigital? They fell 14 percent, now that Google is unlikely a buyer.
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