Tuesday, August 16, 2011

Google's gambling with $12.5 billion for $US206.6 billion

Its a shocking news for mobile manufactures who uses or who depends on  googles Android, especially, Samsung, HTC and lot more smaller handset makers, with the purchase of Motorola by Google. There was not even rumor that this may happen .Google said  purchasing more than 17,000 patents it can use to defend against allegations of infringement as competition accelerates in the mobile phone market , which has a worth of  $US206.6 billion . 

Other mobile manufactures starts installing Google's Android software since 2008 . Now they will be having a though time , as Motorola Mobility may get earlier access to the newest Android technology. Now for Samsung, HTC and other handset makers , google is not only a partner its also a competitor . But Google also said the transaction is supported by HTC, Samsung, Sony Ericsson and LG Electronics. To support Google HTC and other manufacturers are defending against suits that claim their phones infringe patents held by Apple and Microsoft. 
Gartenberg said the Motorola Mobility purchase gives Google the "opportunity to pursue their pure vision of Android," the mobile operating system it currently licenses to handset manufacturers around the world.All the manufactures know Google is deeply committed to defending Android, its partners, and the entire ecosystem . Samsung Electronics also welcomes Google's acquisition because it will protect patents for the Android camp, while not affecting current business, James Chung, a Seoul-based spokesman for the company said by telephone .Google will also be able to help Motorola Mobility negotiate a reduction in the already low royalty - at 4 per cent of the phone purchase price - it pays Qualcomm for chips, said Ashok Kumar, an analyst at Rodman & Renshaw LLC..


Google's largest previous purchases were online advertising firm DoubleClick for $3.1 billion and YouTube for $1.65 billion. 
Google launched Google Catalogs Tuesday to support consumers on tablet devices. The free app enables consumers to browse favorite catalogs and interact with new layers of rich-media content for brands such as Anthropologie, Crate and Barrel, Neiman Marcus and Williams-Sonoma.
Google shares lost 1.16 percent in New York on Monday and shed another 3.27 percent on Tuesday to close at $539.00.Standard & Poors, meanwhile, downgraded its opinion of Google shares on Tuesday to "sell" from "buy" saying the Motorola Mobility purchase poses a "risk to the company and stock."