Google and Motorola plan assault on converged market

Google and Motorola plan assault on converged market

Google’s acquisition of Motorola Mobility will strengthen the manufacturer’s drive into the converged market, according to Google chief Larry Page and Motorola Mobility CEO Sanjay Jha.

Speaking at a call-in with industry analysts, Larry Page (pictured) made clear Google’s primary reason for the acquisition is the opportunity to own Motorola Mobility’s impressive intellectual property portfolio.

However he also said Google sees opportunities in Motorola Mobility’s converged strategy. ‘Motorola Mobility is poised for tremendous growth and is a leading home devices maker and that offers us a very big opportunity,' he told analysts.

Speaking at the same call-in, Jha said Motorola Mobility was well-positioned to drive into the converged market with its smartphone, set-top box and video portfolios and that the acquisition would add impetus to this strategy.

He said: '‘We will be able to accelerate that convergence now and so I am very excited about this transaction.’

Motorola Mobility’s Home division, which includes home devices and infrastructure, made £3.6bn in revenues in 2009 with its home devices portfolio providing 75% of total revenues.

More than three-quarters of Motorola Mobility’s Home division sales are in North America, which gives Google the opportunity to drive converged offerings and related Android and Google advertising into the US market.

Page said the deal would ‘protect the Android ecosystem which is under threat from some companies so having the intellectual property portfolio is a good thing'.

Jha added that Motorola Mobility has 17,000 existing patents and 7,500 applications. He added: ‘As a result, we are able to provide much better support to the business at Motorola Mobility and to support the Android ecosystem.’

Google’s Android chief Andy Rubin, who also attended the call-in, said Google’s Android partners supported the deal. He said: ‘I spoke to the top five Android licensees yesterday and they all share our enthusiasm for the deal.’

Rubin insisted there will be no change in the way Android is run. ‘We see this transaction as protecting and extending the Android ecosystem,’ he said.

Written by Mobile Today
Mobile Today

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