Google Acquisition of Motorola Mobility, by NMA

August 17th, 2011

The video above depicts the news that has rocked the technology sector this week, with quirky Taiwanese humor. New Media Animation is known for its humorous reinterpretations of news. This video is shorter and less hilarious than usual, but marks the first time Apple CEO Steve Jobs is the villain.

To the shock of many, this monday Google CEO Larry Page announced that Google is paying 12.5 billion US dollars for Motorla Mobility. It’s official reasoning is that they need to protect their highly successful mobile operating system, Android, from Apple and Microsoft, who are suing manufacturers of Android devices for patent infringement. Motorola has tens of thousands of mobile-related patents.

Google calls the unprecedented alliance between these former arch-enemies “uncompetitive” and bad for innovation. This seems to be true; there was once a standoff between manufacturers, and suing over patent infringement was viewed like the no-win scenario of global thermonuclear war. With costly patent battles looming in the future, companies must now spend billions of dollars in a patent arms race reminiscent of the cold war.

By its actions, Google claims to be looking out for all licensees of Android, which it gives away for free. Page has promised to keep operations of Motorola independent from Google. Yet, that did not allay the fears of Standard and Poor’s, who changed their recommendation of Google stock from “buy” to “sell” yesterday. Standard and Poor’s thinks that the Motorola patents will fail to protect Android. Many analysts think that Android licensees Samsung, HTC and Sony will now be uncomfortable with Android and move to Windows 7 instead. The reason: Motorola would now have an unfair advantage over them, being part of the company that makes its software.

Twitter Facebook Tumblr Flickr
Better Tag Cloud