Google Faces Challenge Bringing Tired Motorola Brand to Life

NO RATINGS
View comments: newest first | oldest first | threaded
hms022001
User Rank
Evangelist
Set top boxes
hms022001   8/17/2011 1:56:48 PM
NO RATINGS

The patents are the focal point of the purchase, but you are correct Mitch the set top boxes gives Google TV a huge asset and leverage. 

Mitch Wagner
User Rank
Blogger
NO RATINGS

Apparently, that's what Henry Blodget says: Google buying Motorola will be a disaster comparable to AOL buying Time-Warner. 

There are only two things that Motorola has that Google could want: The patents, and the set-top boxes. 

And not the boxes themselves -- the market share, to use as a weapon against the ISPs who might seek to throttle Google's access to consumers. 

Everything else, including the design of the set-top boxes themselves, are products that Google could make on its own. 

Mitch Wagner
User Rank
Blogger
Like buying a frat house.
Mitch Wagner   8/16/2011 8:25:18 PM
NO RATINGS

One blogger noted that one of the first things Larry Page did as CEO this year was to try to refocus the company, killing a bunch of projects that were distracting from core business without adding value. The "Wonder Wheel" and Google Labs, two name two. 

This blogger went on to say that Google buying Motorola, a failing hardware vendor, and nearly doubling its payroll, is like announcing you're going to clean house and instead going out and buying a frat house. And keeping both. 

(I can't remember which blogger said that and I'm too lazy to look it up.)

Ryck
User Rank
Evangelist
Re: LOOKING IN THE WRONG PLACE
Ryck   8/16/2011 5:20:19 PM
NO RATINGS

Ellis, I just don't think that Google wants to be in the hardware business.  I like Mitch's idea that they strip out the patents for themselves, and let the handset business operate on its own or close it down.

Even if they keep Motorola operating, it can still work.  There are many examples of companies competing and cooperating (coopetition).  Provided that Google let's the partners know what the rules of engagement are, this could work.  Also, what is the option for HTC and Samsung, for example?  Will they move to the Microsoft platform?

hms022001
User Rank
Evangelist
HTC vs Apple
hms022001   8/16/2011 1:06:19 PM
NO RATINGS

Add to the list of patent suits;

http://www.pcmag.com/article2/0,2817,2391192,00.asp

 

Mitch Wagner
User Rank
Blogger
Wouldn't it be wild?
Mitch Wagner   8/16/2011 12:56:05 PM
NO RATINGS

Wouldn't it be wild if Google simply grabbed the patents from this deal, and then spun out the rest of Motorola Mobility into its own separate company? Or even just shut MM down if it couldn't find a buyer?

A couple of interesting analyses of the deal. Daring Firebal's John Gruber:

I think Motorola knew they had Google by the balls. Google needed Motorola's patent library to defend Android as a whole, Motorola knew it, and they made Google pay and pay handsomely. I don't think it's curious at all why Google didn't simply license Motorola's patents. Motorola held out for a full acquisition at a premium far above the company's actual value, and threatened to go after its sibling Android partners if Google didn't acquiesce. Thus the public threats from Jha and Icahn. Thus the high price. Thus the lack of a simpler, cheaper licensing agreement. Thus the unusual $2.5 billion reverse breakup fee.

Also:

I think Apple and Microsoft probably feel pretty good, competitively, about having forced Google into spending $12.5 billion for Motorola - a handset maker with rapidly declining sales, no recent profits, and misguided management.

Also, Motorola is the top vendor of cable modems. That gives Google great clout in its net neutrality fight with ISPs. 

Ellis Booker
User Rank
Blogger
Re: LOOKING IN THE WRONG PLACE
Ellis Booker   8/16/2011 10:24:14 AM
NO RATINGS

Entirely agree that Google's primary motivation was defense re: patent challenges. That said, consumers don't care about this--at all. They just want great products that work. The worry, I think, is that Google will cross lines with its in-house Android licensee (Motorola Mobility--or whatever it comes to be known as) and that this will fracture the touted Android "ecosystem" with OEMs like Samsung and HTC (to name just two of my favorites).  

That would be a shame, in my opinion, because I've never liked Apple's business model, which calls for a stranglehold on hardware. It would be a shame to see Google/Motorola head down this path, although that's certainly a possibility. 

hms022001
User Rank
Evangelist
Motorola
hms022001   8/16/2011 10:16:46 AM
NO RATINGS

Google’s main target is to acquire the patent library.  This gives Google ammo to combat the list of litigators regarding patent infringement.  But with Android devices projected to account for over 50% of the market Google understands the device sales potential, and will optimize Motorola's product line.  Yes the relationship with HTC, Samsung, Sony, etc. will get frayed but that will allow those companies to create Windows 7 phones.   In the long term the consumer wins in this deal

Ryck
User Rank
Evangelist
LOOKING IN THE WRONG PLACE
Ryck   8/16/2011 10:10:59 AM
NO RATINGS

Ellis, I think you're looking at the Motorola acquisition from the wrong angle.  I don't think Google has any desire to be a hardware manufacdturer.  In fact, I believe, like many others, that this acquisition was primarily to gain access to Motorola's treasure chest of patents, which is approaching 21,000 when you include those pending.  The Android competitors have been clever in not directly pursuing Google for patent infringement.  Instead, they have targeted the handset manufacturers leveraging Android, such as Samsung and HTC.  The patent portfolio Motorola provides Google will allow them to combat these threats, and hopefully result in some cross-licensing agreements.



More Blogs from Ellis Booker
A survey of marketing and IT executives reveals a surprising meeting of minds around big-data analytics and other issues.
Despite the recession, wealthy Americans have not changed their spending habits much at all, a recent survey finds.
Encouraging passionate fans to tweet and post on Facebook in favor of your company can have unintended consequences.
When it comes to social media, marketers next year need to step up their game in two areas: integration and analytics.
Along with a healthy uptick in marketing executive compensation, the CMO Council’s annual survey finds more than half of marketers had increased budgets in 2012.
leadership reports
Getting the Most from Mobile Marketing
The CMO Site, The CMO Site
The proliferation of smartphones and tablet devices presents new opportunities and challenges for marketers to reach customers where they are and when they’re ready to buy. Apps, the mobile Web, social check-ins, geofencing, and mobile ad standards are among the tools marketers need to master in this new world. Learn how to use new mobile technology effectively and avoid its hazards.
LEARN MORE
CMO videos
GM's Customer Focus
How GM uses customer metrics and analytics.

2:34

(6) comments
Del Mar Races to Win
How the racetrack uses social and mobile marketing

1:54

(6) comments
Social Media Resolutions
Ideas for social media marketing in 2012.

4:25

(41) comments
My Viral Tweet
What marketers can learn from a tweet.

2:54

(9) comments
Trikkes & Marketing
Retailers face three options in 2012.

3:41

(11) comments
Mobile Marketing Is Hard
Meet Amazon.com's Price Check app.

3:01

(1) comment
Neither Snow Nor Rain
The USPS plans to curtail mail delivery.

02:18

(6) comments
Careful With Foursquare
Mitch Wagner trips over his own feet.

04:26

(4) comments
Community Is 'Where It's At'
If brands want their names to stick they need to ...

2:27

(11) comments
Twitter Upgrades
Twitter is now more useful for brands.

2:42

(2) comments
Fonts Mean Brands
Mess with your font at your peril.

3:12

(6) comments
CMOs Need More Customer Time
CMOs are missing the opportunity to get info ...

2:21

(1) comment
Behavioral Ads
Marketers are losing on behavioral advertising.

2:54

(9) comments
'Moneyball' Marketing
"Moneyball," the new Brad Pitt baseball movie, is ...

3:00

(2) comments
twitter feed
The CMO Site Twiter Feed
like us on facebook
The CMO Site Linked-In Group Ad
Charlotte Blank
General Motors: Keeping the Customer at the Center

2|29|12   |   2:34   |   (6) comments


How the carmaker uses metrics and analytics to track all the proliferating information streams it has on customers, from social media, real life, and more.
Craig Dado
Del Mar Races to Win at Social, Mobile Marketing

2|15|12   |   1:54   |   (6) comments


Craig Dado, senior vice president of marketing for the Del Mar Thoroughbred Club, describes how the racetrack uses social and mobile marketing to attract a younger, female demographic.
Mitch Wagner
Social Media Marketing Resolutions

1|25|12   |   4:25   |   (41) comments


Ideas for boosting B2B social media marketing in 2012.
Mitch Wagner
My Viral Tweet

1|18|12   |   2:54   |   (9) comments


What marketers can learn from a tweet that went viral.
Mitch Wagner
Trikkes & the Future of Retail Marketing

1|9|12   |   3:41   |   (11) comments


Retailers face three options in 2012: Go low on price, go high on service, or go out of business.
Mitch Wagner
Looking 5 Years Ahead in Marketing

12|21|11   |   3:51   |   (4) comments


IBM made five predictions for the future in its annual 5 in 5 projection, and three of them are relevant to marketing.
Mitch Wagner
Mobile Makes Retail Marketing Harder

12|19|11   |   3:01   |   (1) comment


Amazon.com's recent Price Check app heralds the beginning of a new era of creative destruction for brick-and-mortar retailers.
Keith Dawson
Neither Snow Nor Rain

12|13|11   |   02:18   |   (6) comments


As the US Postal Service prepares to curtail mail delivery, marketers relying on first class will have to plan more carefully and, over time, move into other channels.
Mitch Wagner
Don’t Embarrass Yourself on Foursquare

12|12|11   |   04:26   |   (4) comments


Editor-in-chief Mitch Wagner trips over his own feet trying to use a Foursquare discount, in a tale with a lesson for brands.
CMO Video
Community Is 'Where It's At'

11|15|11   |   2:27   |   (11) comments


Is a massive, three-day industry event featuring A-list speakers like Bill Clinton and Malcolm Gladwell the right approach for a company seeking to generate awareness of its brand? Steve thinks that goes part of the way, but if brands want their names to stick they need to build communities.
Mitch Wagner
Twitter Upgrades Activity Streams

11|9|11   |   2:42   |   (2) comments


Twitter improved its home page to make it more useful for brands looking to find influencers to engage with.
Keith Dawson
Fonts Mean Brands

10|31|11   |   3:12   |   (6) comments


Once you associate a font with your brand, you mess with it at your peril.
Mitch Wagner
IBM Study: CMOs Need More One-on-One Customer Time

10|20|11   |   2:21   |   (1) comment


CMOs rely on aggregate data for customer preferences and are missing the opportunity to get one-on-one information through social media and other resources, according to a study of 1,734 CMOs conducted by IBM. Watch a Webinar presenting the findings, and get a copy of the report for yourself.
Keith Dawson
Behavioral Ads: Getting Back in the Conversation

10|18|11   |   2:54   |   (9) comments


Surveys show that marketers are losing the mindshare battle on the benefits of behavioral advertising – and they need to rejoin that conversation.
Mitch Wagner
'Moneyball' Marketing

10|14|11   |   3:00   |   (2) comments


"Moneyball," the new Brad Pitt baseball movie, is one every marketer should see. It's not just about relying on metrics and analytics over gut feelings, it's also about relying on the right metrics and analytics.