As stated in Yang Gu’s blog, Google may have marginalized itself from its partners by acquiring Motorola. The intention of this acquisition was to build its patent library and protect itself from legal action. Instead, it has prompted partners such as Samsung and HTC to seek software other than Google’s Android operating system for their mobile devices.
This acquisition was seen as a threat to companies who use Google’s Android operating system on their phones. Days following Google’s purchase, Samsung signed a deal with Microsoft to “diversify what operating systems its phones run”. HTC is also searching to buy a new operating system for its phones. Hence, Google’s partners are now afraid that it will follow Apple’s framework of vertical integration of its software and now Motorola’s hardware divisions. This would leave companies such as Samsung and HTC without an operating system for their phones.
Furthermore, some market analysts have now downgraded Google stock to from “buy” to “hold”, stating this acquisition will “distract senior executives”. This acquisition of Motorola has not only encouraged competition, as stated by Yang Gu, but also, blurred Google’s outlook.