Google To Sell Or Not To Sell That’s The Rumored Question About Motorola

Google has yet to close on their $12 billion dollar purchase of Motorola Mobility. The sale has been approved by the U.S and the European Union however it is still undergoing some international approval. All analysts are suggesting that it’s a done deal and in the coming months Motorola Mobility will be part of Google.

With that in mind there are rumors running rampant on exactly what is going to happen post merger. Google has said they aren’t going to bring Motorola to Mountain View right away and that they are going to run it as a separate business. They also admitted early on that Motorola’s treasure trove of patents going back to their early days as a cell phone pioneer are a big part of this deal.

The Wall Street Journal has cited unnamed sources suggesting that Google is already in talks with Chinese manufacturer Huawei about selling the hardware business from Motorola Mobility. If the sale is entirely about the patents than that strategy might make sense however that sale in itself will have huge hurdles to overcome. The U.S. government already keeps Huawei at an arms length, and like Australia, our government has passed on approving infrastructure deals with the Chinese manufacturers networking division because of what’s perceived as close ties with the Chinese military/government.

More after the break

Digitimes has reported today though that Google isn’t going to sell the hardware division at all. Digitimes said this today, which we learned form our friends at TFTS:

Despite persistent speculation indicating that Google might eventually release control over Motorola Mobility, it is unlikely Google will sell the handset vendor any time soon, since the Internet service company has shown more interest in the hardware business, according to sources in Taiwan’s handset industry.

A recent Wall Street Journal report suggested that Google is preparing to sell Motorola’s hardware division to China-based Huawei Device at a high price, citing rumors from Asia.

While many Android enthusiasts have speculated that Google wants to keep the Motorola hardware division close to get into the handset business directly, that plan doesn’t bode well with manufacturing partners like HTC, Samsung and LG who would have to compete against Google.

We’ve also heard underlying rumors that Google may turn to Motorola to build “Chrome” devices that ultimately linked to the Google Play store much in the way that the expected Nexus tablet is going to do. We’ve heard some sources even say that Android will become a separate less Google focused OS over the next few years while Google works on it’s own hardware that may fall under the name Chrome.

Whatever the final outcome is, it’s still a wait and see as far as the original Google purchase of Motorola is concerned. While Google CEO Larry Page commented briefly on the Motorola transaction on a recent earnings call he in no way pointed to any kind of strategy Mountain View may have with the hardware division of Motorola Mobility. The one thing that stays consistent in all of these rumors is that Google will ultimately end up with the patents.

source: Digitimes via TFTS