August 15, 2011

Google to Buy Motorola Mobility for $12.5 Billion

Vlad Savov, writing for This Is My Next:

“Google has agreed to purchase Motorola’s recently spun-off Mobility arm for a fee of $12.5 billion. Mobility was the name given to Motorola’s consumer devices unit, which includes the Droid smartphone line and the nascent Xoom tablet range, both of which rely on Google’s Android software for their operating system.”

This is huge news: Google is becoming a mobile device company. Not only will it develop a mobile operating system (Android), they’ll make the phones and tablets to run it. This move creates direct competition for Apple, which has itself shown that by controlling both the hardware design and the software development, a company can fully define the mobile user experience. That was the key to iPhone and iPad’s success.