Googorola like Godzilla just keeps coming back!

Hot on the heels of the analysis by Bloomberg on the Googorola patent mutant monster Eric Schmidt has said that the acquisition was about more than just patents.

Wow. Amazing.

Schmidt and was quoted as saying “We did it for more that just patents. We actually believe that the Motorola team has some amazing products coming.”

Back in 2002 Carly Fiorina said:

With Compaq, we become No. 1 in Windows, No. 1 in Linux and No. 1 in UNIX. This new strength and our market presence make us a much more attractive partner. And with our combined market position in servers, we will be able to engage the software community in building the applications that will drive demand for Itanium systems
Compaq is the leading provider of storage systems in the world on a revenue basis. With Compaq, we become the No. 1 player in storage, and the leader in the fastest growing segment of the storage market - storage area networks.
With Compaq, we double our service and support capacity in the area of mission-critical infrastructure design, outsourcing and support. And while support is frequently considered the boring part of the services business, it produces mid-teens operating margins quarter after quarter. It's like the supplies business - more is better.
More verbose that Schmidt but basically the same sentiment its not just about the PC business.

Mark Hurd, said about the Palm acquisition “We didn’t buy Palm to be in the smartphone business. And I tell people that, but it doesn’t seem to resonate well. We bought it for the IP. The WebOS is one of the two ground-up pieces of software that is built as a Web operating environment…We have tens of millions of HP small form factor Web-connected devices…Now imagine that being a Web-connected environment where now you can get a common look and feel and a common set of services laid against that environment.”

According to Hurd it wasn’t about Palm’s gizmo business.

So all three of these acquisitions aren’t about the most obvious. Sure HP bought Palm for their patents on an OS that no one uses rather than as a quick way to get into a hot and expanding market segment that they totally missed while they bathed in the glow of becoming the No.1 PC maker.

Schmidt went on to say “We’re excited to have the product line, to use the Motorola brand, the product architecture, the engineers. These guys invented the RAZR. We know them well because they’re Google Apps users.”

So let me get this straight. It’s not about the patents really its about the production facilities, the engineering brilliance and the name Motorola?

While the RAZR was a very lust worthy piece of equipment all Motorola did with it was churn out variant after variant of the same handset. After a few years Motorola was yawn worthy, greeted with a resounding “What? Another razory thing? Where’s the Nokia?”

So either Motorola was acquired for their patents which is starting to look more and more like not such a great idea. Or. They bought Motorola to get into the handset business and compete against their customers. Also not a great idea.

This is looking more and more like another glorious corporate exercise in hubris and overreaching that’s going to come home to roost some time in the future.

Samsung isn't thrilled by Googorola

Seems like Samsung was being ‘polite’ about the Googorola hook up after all

Read the article here.

Looks like Samsung’s going to open the wallet too.

If this keeps up and companies start spending cash like there’s no tomorrow then maybe they’ll also jump start the economy.

More Thoughts on Googorola

I was talking to a friend of mine in the United States last night.

He was telling me that he thinks that Googorola is going to end up as a colossal corporate folly.

His take on the whole deal is that Google rushed the deal. They rushed the deal because they didn’t have the patent pool to defend Android and they were under pressure to find some way to defend it. So they zeroed in on the grandaddy of cellular technology, the guys that invented the thing and made them an offer they couldn’t sensibly refuse.

They rushed the deal because they crapped out with the Nortel patent portfolio auction a little while ago.

If the stories that this deal was put together in the last five or six weeks are true then Google was desperately seeking patents which puts the comments by Motorola CEO Sanjay Jha from about a week ago into perspective. He was playing brinksmanship with the Gnomes of Mountain View and they blinked, paying $12.5 billion for a company that lost $85 million last quarter!

Basically he said we’re gong to look at WinMoPho and sue the pants off all the other Android vendors.

And you can bet that Carl Ichan (one of Motorola’s largest shareholders) was happily wringing his hands in the corner wondering if Hanukah had come early.

The real question is, how many patents do Motorola have that will really help Google defend Android?

Its not going to help them in their fight against Oracle and I doubt its really going to help them in their fight with Apple over UI look and feel and its questionable if its going to help them in their arguments with Microsoft.

So if these Motorola patents aren’t going to help them in these three major battles then why?

I mean Redmond is asking Samsung for $15 per Android doohickey and I doubt that is going to change and they got General Dynamics, the granddaddy weapons of death and destruction globocorp to shell out a licence fee per Android doohickey.

This tells me that there may be something to the patents they’re showing everyone to get them to agree to paying the royalty.

Could it be the fact that Motorola were suing Microsoft for patent infringement as a reaction to Microsoft suing them “In October 2010, Microsoft sued Motorola for allegedly violating nine patents with its Android smartphones. “The patents at issue relate to a range of functionality embodied in Motorola’s Android smartphone devices that are essential to the smartphone experience,” Gutierrez wrote in an Oct. 1 statement. Motorola later retaliated with an intellectual-property complaint of its own.”

This might be nothing more than posturing to negotiate a better “per doohickey” royalty fee.

I just wonder if Motorola just saw Google as desperate to wave a pile of patents at everyone and say “look at us…if you don’t play nice with us we’ll hit you with our patent portfolio”, especially after their debacle with the Nortel patents.

I also wonder if Motorola realise that their patent portfolio won’t help Google all that much which is why Google have to pay $2.5 billion if the deal DOESN’T go through. Like after they do their due diligence and find out that the patent pool of around 25,000 patents actually don’t help them all that much?

I really wonder how this is going to pan out for all concerned...

Google buys Motorola Mobile

Lawyers all over the United States woke up happy this morning on hearing the news that Google has splashed out cash, to the tune of $12.5 billion to acquire Motorola Mobile and its portfolio of around 25,000 patents.

Googorola? Motorogle?

I like Googorola personally. It sounds like something that would go on a rampage and flatten Tokyo for our matinee entertainment.

I’m guessing that Google plans to unleash their mutant matinee monster in Redmond and Cupertino hoping for a Godzilla meets Tokyo like result and with such a large patent portfolio you’ve got to start wondering how long it’ll be before their army of lawyers will end up rolling into action like London teens looking for a night of looting and pillaging.

The really interesting story here is the effect on LG, Samsung and, especially, HTC.

HTC is now between the devil and the deep blue sea. On one side their wildly successful Android based business and on the other their not so much Windows MoPho based products.

The good news for them (!?), now, is that they’re going to be competing directly against their key suppliers. Microsoft and Nokia, who have recently announced that they’re going to drop prices to buy marketshare in the US for the good of Finland, Redmond and the WinMoPho way. Googorola who have now got a hardware/software end to end experience and they control Android too. Unless it now somehow forks.

Publicly HTC, Samsung and LG aren’t going to be too vocal about this. They won’t want to piss off the Gnomes of Mountain View, but you’ve got to wonder about the long term effects on their businesses.

If the Gnomes really wanted to go for a scorched earth policy they should have bought Nokia, I mean with their share price it wouldn’t cost a whole lot, and then move the whole company to Android and leave Ballmer standing with his WinMoPho in his hand.

As for Samsung, between their problems with Apple and now facing down Googorola, Tokyo’s not all that far from Seoul after all, they’ve got some real problems especially since they’re only just starting to make serious inroads into the market place with the Galaxy S II.

LG look like they’re going to be the big losers in this one because they don’t really have major market penetration outside Korea.

I’ll talk a bit more about this over the next couple of weeks because this is a landscape mover.

I wonder if any IP Law Firms have floated? That’s where I’d be putting my money.