Sunday, February 2, 2014

Google sells Motorola to Lenovo for $2.9 Billion.

          On January 29, 2014, Google sold Motorola to large Chinese manufacturer Lenovo. This may seen weird when I say that Google originally bought Motorola for $12.5 billion. Why would Google do this you may think. Isn't it a loss for Google? Well Google used them we could say. I will get into more depth about that later. So lets talk about the three perspectives on this story, Lenovo, Motorola, and Google's perspectives.

          Lenovo really has nothing to lose. They have a huge presence in international markets that they are extremely weak in America. Motorola will give Lenovo the impact they need to reach American presence.

          On Motorola's side, they have lost 10000 of their 24000 patents to Google and lost bunch of employees. They also had to give up 10000 of their manufacturing patents to Lenovo, which is understandable. One thing Google still has control over is Project Ara which is Motorola's modular smartphone program.

          Last but definitely not least is Google. This is where most of the mistakes happened. In my opinion, they should have kept Motorola. They could have literally taken over Apple. Really. Let me explain. In Motorola's patent portfolio, it has patents over Wi-Fi and GSM. They could have slowly started making Wi-Fi more private and restricted and waited until iPhone sales slowed down. Then Apple would come and beg Google to let them use Wi-Fi. Google should then try to force an Android licensing deal with Apple. If Apple says yes, then Google pretty much owns the smartphone market. If Apple starts raging and sues Google, no court in the U.S can allow this. But this couldn't have happened immediately.

          So these are my theories for for the buyout. Stay tuned on the technoface for more new and reviews!

          

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