UPDATED 12:38 EDT / AUGUST 16 2011

The “What Ifs” Of Google-Motorola Deal: Will it Even Happen?

The internet is abuzz regarding the Google-Motorola deal since being made public yesterday.  Some are just curious while some are more analytical and are actually scrutinizing the deal and its probable effect on other mobile companies especially those that are running on Android.  Let’s do a recap on some of the industry effects we’ve seen now that an entire 24 hours has passed since Google made its intentions known.

Nokia and RIM benefited from Google’s announcement as their stocks rose as speculations about Google acquiring the two companies may also push forward.  Others are speculating that this deal will cause a rift between Google and other handset manufacturer like Samsung and HTC, which distribute Android-powered phones and tablets.

What’s in it for Google?

And just one day after the announcement, with the dust settling, people are already starting to question the deal as to what Google’s motive really is.  Google stated that the deal will increase patent ownership.  If this is true, then why didn’t they just go through with the InterDigital deal?  InterDigital is a licensing company that owns some 8,000 wireless patents and has another 10,000 patent applications, so they’re likely after more than just patents here, given Motorola Mobility’s established manufacturing line up, spanning smartphones, tablets and set-top boxes.

What if Google’s agenda is to become even more of a mobile company? That’s certainly the stance John Furrier takes in his post on SiliconAngle this morning.  Does this mean that there is a possibility that they will acquire more mobile companies, and will Android be able to remain a truly open platform? The acquisition solidifies Google’s plans to be taken seriously as a mobile company, going all-in and dealing with the aftermath once the deal’s been made.

What’s in it for Android?

Seeing as Android is already central to Google’s mobile efforts, what does the Motorola buy mean for the OS?  As I mentioned yesterday, this could mean that Motorola will get special access to updates and other Android perks before others are allowed access, meaning app developers will be more focused on developing for Motorola devices while other companies have to wait until a compatible version of the app is made available for them.  Google insists this won’t be the case, but it’s certain that the mobile OS sector will only get more competitive with Motorola under Google’s reign.

What if the deal doesn’t go down?

And on a final what if, what if the deal doesn’t materialize?  What will happen to Google and Motorola Mobility?  In an article on FierceWireless, they state that if Google backs out of the $12.5 billion deal, they have to pay Motorola $2.5 billion but if Motorola backs out, they have to pay $375 million to Google.  If this is true, Google might really go for the deal so that they won’t have to pay $2.5 billion and not get anything.

Scrutiny of the deal is becoming more popular than the deal itself, as more pundits are growing concerned as to what Google’s plan is for the future.  Google should not take for granted the mobile companies that have embraced their Android platform, having made it more popular that Apple’s iOS.  This deal isn’t likely to become Google’s downfall but it certainly changes the game.


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