Motorola Mobility Dissolves into Google

Last year when Motorola split into two companies, both called Motorola, they created brand confusion. Now Google is acquiring Motorola Mobility Holdings Inc. for its wireless patents.

What’s left of Motorola can begin to create a stronger, focused brand..but that is a big if.

Google not Motorola

What if Google has acquired rights to the Motorola brand? What if they use it? Motorola Solutions, the remaining part of the original Motorola, faces continuing brand chaos if Google uses the Motorola brand, too and if Google takes it in another direction.

Companies can split and its parts can be sold, but the same cannot be said for brands.

UPDATE: Google says it does plan to use the Motorola brand as will the company called Motorola Solutions. The problem remains of the market asking asking “which Motorola?” when talking about the brand. Of greater risk is that both Motorolas will be at the mercy of the other. The actions of one company will impact the actions of the other. If one Motorola stumbles, it brings the other one down. Google would be wise to build its brand equity in a name that totally owns and controls rather than cede so much to Motorola Solutions (and vice versa).

Past post on the Motorola brand problem: Breaking the Motorola Brand

 

1 comment to Motorola Mobility Dissolves into Google

  • Matt Merriam

    Unfortunately for Google this is the technology equivalent of starting a land war in Asia. If they actually go into the hardware business they kill off their ability to create a software platform with Android. This cedes a ton of turf and mindshare to Apple and HP just with the announcement — it’s not wise. If Google does not effectively maintain their vendor relationships in southeast Asia to produce the cheap, nearly disposable, mobile phones that has got them this far: they’re toast, and damn fast too.

    The fallback analysis is that the acquisition is simply that Google gains all the sea of intellectual property developed by Moto in mobile phones over the last few decades. If that’s the case, then Google either needs to sell off the hardware operations or close them down. Neither should be palatable to regulators who don’t want to see American jobs gone, or see the sucking the value out of a major tech player to leave an un-differentiated shell of manufacturer with all-too-high domestic cost basis. Given Google’s inability to pay taxes, the last thing the American public wants to see is another monopolistic ploy to kill jobs.

    So is this Larry Page trying to be in charge? Is this what we have to look forward to in the post Schmidt era? This is going to be quite a show.

    As for the Moto-Mobo brand: it was always a work in progress. No matter what, it retains equity and endearment to consumers — or fear and loathing, depending on what product they bought.

    Look for the SEC to kill this deal and Moto to get a credibility bump.

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