The initial reaction of the stock markets to Google buyout of Mototrola Mobility was a 3% plunge in Google stock value. But ye Editor thinks the buy makes a lot of sense for Google for the following reasons:
1)Google is going to operate the company as is and not bring Mototrola into the Google fold – this means minimal disruptions and has later advantages;
2)Google has got its major other hardware partners on board - see here;
3)Google is reiterating its open pledge for Android – its chief selling point to hardware makers. Thus a major Linux influenced OS will remain an open player in smartphones and tablets;
4)Google now has a hardware arm where it can get fast feedback on software+hardware ideas and inventions. A Nexus like foundry to set minimum standards for Android hardware;
5)Google gets some key mobile patent protections that it would have had to pay $6B+++ for.
Now the only possible, major sour point – is Motorola a spent force in smartphone and tablet innovation? I suspect that after an open kimono inspection by Google – no.