Google Acquires Motorola – Nokia beware (update)

News just in, Motorola bought by Google for $12.5 Billion. This poses a huge threat to Nokia which up till now was competing solely with the ‘software’ from Google. By acquiring Moto Google is sending a clear message that it is:

– strengthening its patents by acquiring the huge number of patents Moto has, whereby at least one vendor will not have to pay licensing fees (patent disputes) and the latest and greatest can be shown

– Has a strong hardware manufacturing arm

– Motorola devices will now no doubt continuously have the latest and greatest versions of Android. MOTORBLUR will die, and Motorola no longer has a smartphone division. This is very similar to the deal that MSFT-Nokia made, with exclusive access to WP, solely relying on WP for smartphone strategy and giving other vendors opportunity to license. Google will develop this rapidly and expand rapidly. Do not be surprised to see profits rise as they made have higher profit margins due to lower licensing (due to patent disputes), and all the Nexus S devices from MOTO.

– This poses the Q is MSFT likely to buy Nokia? Under current condition: No. They get everything they want without spending a lot. In addition, Nokia has large cash reserves etc. that make it hard to buy. On the other hand, other vendors will be more open to licensing WP7.

Nokia should be afraid, because now things are really heating up. This is huge news and Nokia has even more pressure on since they lost another WP vendor.

Good move Google. Nokia better hurry the hell up with the Sea Ray…they have been bleeding for a while and the sharks are closing in.  They will not have much to save at this rate.

Update: Eldars tweet: “Finally. Nokia could be sold in a few weeks. Price 27billions for the whole company. Microsoft in a hurry but want to pay much less”. May or may not be true if it is and MSFT buys Nokia, I for one will no longer be a Nokia person.

WSJ

Chinese Professor: Controversial TV Advertisement.

This is in the ‘plus some’ category of the blog. As an economist seeing the below advertisement was interesting when I saw it on TV, its actually banned by certain networks for being too controversial. Coming from a mainly Austrian Economics points of view the US path of government spending, and trying to be everywhere at once while getting deeper in debt, will have its consequences in the near future.

The founding fathers stressed on having a non-intrusive government, with the people going about their business and the government not being too involved in everyones affairs (a lesson learnt from the British rulers). The rate of government policies that are expanding their influence is unbelievable.

People of course always point out to Wall Streets greed as they have done in the past, however, that in it self was caused by various factors that led up to it, which was induced by earlier government policies. There are various blogs by great professors that talk about these issues such as Cafe Hayek and Marginal Revolution. Both these blogs have great insights with unique ways of communicating ideas and they are great professors.

Regarding the video, it gets it point across however, the tone near the end where the Chinese are laughing undermines the whole objectivity of the video. The point that should be made is simply that government expansion has been increasing, and as they try to solve various issues by getting into the private sector, the economy as a whole will get less efficient due to the inefficiencies governments bring.