Google Rumored To Be In Talks To Sell Motorola Mobility Handset Division To Huawei

Google Rumored To Be In Talks To Sell Motorola Mobility Handset Division To Huawei:

 

When people think of the biggest story for 2011, Google’s acquisition of Motorola Mobility immediately comes to mind. The initial thought was Google may have had plans to use Motorola to create a new line of 
Nexus
 premium devices, but really the more likely theory for Google’s major purchase has to do with MOTO’s vast number of patents— 17,000 to be exact, which would help in the legal fights against Microsoft and Apple as seen here… and here… and here again as some examples. Despite the sheer number of patents which would help, Google still has to deal with all facets of MOTO including the 20,500 MOTO employees working in 92 major facilities across 97 countries and set top cable box business in addition to mobile division. Google can be applauded for being aggressive and trying to make bold moves, but could it have gotten ahead of itself when making this big of a purchase? More importantly, could Google actually be considering a sale of MOTO so it can focus on its core strength– web search– instead of getting into the handset business? There are some indications that points to yes.
It looks as if Google began preliminary discussions on how to get rid of its newest purchase. According to the Wall Street Journal, there have been rumors in Asia swirling around that Google “has already offered it (Motorola Mobility’s handset division) to China’s Huawei at a high price”. Naturally Google denies such a thing has happened, but if the speculation is even remotely true, it would make sense for a few reasons. One is because it allows Google to focus solely on the development on the Android platform and its core business– web search. The second is Huawei is a up-and-coming brand which is only scratching the surface of its potential. Motorola’s patents and technology combined with Huawei’s strategic thinking and presence in China would assist with Google’s protection from additional legal battles from Microsoft and Apple.
The bigger picture is the acquisition still has yet to be formally approved. However– once it is approved, we could see either a) Google believing it could be all things to all people which would be the “scariest part of all for Google’s investors” or b) The initial makings of what will be a new manufacturing giant.
source: WSJ

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