Google, called as “Master of all jacks”, played a master stroke way back in 2011, when it bought Motorola for $12.5 billion to show Samsung some ground levels and what’s more it multiplicated it many more times again by selling it for a mere $2.91 billion. Now you must be thinking why I am overselling this difference of $9.59 billion, which is by common sense called a ‘loss’. As you will go through this write-up, you will surely realize the brain game behind the deal.
What the deal has to do with Samsung:
The problem started with the increasing desires of Samsung for too much credit. It wasn’t enough for Samsung to make the most popular Android phones and tablets, it had to hide Android – and consequently Google’s role in its achievement. It did this using ‘TouchWiz’, the company’s proprietary skin, which painted over all aspects of Android leaving it unrecognizable. To the casual consumer they were buying ‘a Samsung’, Google’s role was largely unrecognized.
Google roars back again by buying Motorola:
The question arises, why Motorola Mobility?
- Motorola Mobility was a founding member of the Open Handset Alliance in 2007.
- Motorola Mobility in 2008 made a big bet on Android as the sole operating system for all its smartphone devices.
- Google is great at software; Motorola Mobility is great at devices. The combination of the two makes sense and will enable faster innovation.
- Motorola Mobility has a long history of innovation in communications technology and the development of intellectual property.
Results: Samsung realises its time to return to the ground
Now about that $9.59 billion difference: