“If you look at what services are most used on smart phones, it’s obvious that they’re things like maps, mail and search-things that Google does,” says Dennis Woodside, Motorola’s new CEO, who formerly headed Google’s domestic sales operation. That’s why, after years of Rubin and others saying, “There is no Google phone,” when referring to Android implementations, this one finally qualifies. “We monetize users.”) And Moto X is a tool to free-base Google. (“We don’t monetize the things we create,” Android creator Andy Rubin once told me. The Android mobile operating system was always intended as a gateway drug to Google products and ads. Utter those, and a Moto X user becomes master of the universe-to the degree that Google, its developers, and the users themselves have digitized it. The Moto X, announced today, marks the arrival, finally, of the Google Phone. What was Google thinking?įinally, we have the answer. Employees who were not Googly, in a business that seemingly didn’t scale. The purchase would almost double Google’s head count with employees who brought little to the bottom line. The other portion brought Google a money-bleeding Chicago-area-based hardware business. But the estimated worth of those patents was less than half Google’s purchase price. Motorola-the inventor of the very first cell phone-had a great patent portfolio indeed. Mainly, it seemed to provide Google with valuable intellectual property that would allow the company to defend itself against a tidal wave of patent lawsuits. Both of those acquisitions were hugely successful, but the Motorola purchase seemed baffling. It was the company’s biggest deal ever, far exceeding previous big buys like YouTube for $1.7 billion and DoubleClick for $3.1 billion. Lmost exactly two years ago, Google announced its purchase of Motorola Mobility for $12.5 billion.
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