Almost exactly two years ago, Google announced its purchase of Motorola Mobility for $12.5 billion. It was the company’s biggest deal ever, far exceeding previous big buys like YouTube for $1.7 billion and DoubleClick for $3.1 billion. Both of those acquisitions were hugely successful, but the Motorola purchase seemed baffling. Mainly, it seemed to provide Google with valuable intellectual property that would allow the company to defend itself against a tidal wave of patent lawsuits. Motorola—the inventor of the very first cell phone—had a great patent portfolio indeed. But the estimated worth of those patents was less than half Google’s purchase price. The other portion brought Google a money-bleeding Chicago-area-based hardware business. The purchase would almost double Google’s head count with employees who brought little to the bottom line. Employees who were not Googly, in a business that seemingly didn’t scale. What was Google thinking?
Finally, we have the answer. The Moto X, announced today, marks the arrival, finally, of the Google Phone.