Could Google Buy Motorola?

Now that Google is in the device business, could they be looking at Motorola's handset division as an acquisition target?.... Don't laugh it could happen. Here's why.

1. Google gains hardware expertise– While Google has great software developers they do not have a clue about how to build a great mobile phone. Some of the limitations of the HTC 1 emerged due to Google's insistence on dictating all the hardware specs to HTC. The Nexus One is reportedly very fast and designed by a 3^rd party design shop so it seems that Google has learned their lesson. Regardless of Google's increased self awareness, competitive pressures emerging between Google and hardware manufactures will restrict the integration of the best hardware and best software technology to create industry leading devices. An integrated hardware & software company can freely exchange IP, leading to more innovative and efficient offerings. A combined company will also provide Google complete control of all implementations of the Android OS on Motorola devices reducing fragmentation.
   

   
   

2. Google competitors are device manufactures – Nokia is competing against Google with OVI, Microsoft has the Danger hardware business, and Samsung is increasingly competing with Google through its app store and new proprietary operating system. And of course there is Apple and Palm. Apple's acquisition of Quattro Wireless last week unmistakably signals that Apple is gearing up to go head to head with Google.
   

   
   

3. Device manufactures may abandon Android – The launch of Nexus One is a clear indication that Google is not afraid to compete with its partners. Motorola's recovery strategy is based on Android and Google has torpedoed this strategy by launching the Nexus One. The new Google device is based on Android version 2.1 which will compete with the Motorola Droid based on Android 2.0. This puts the Droid at a diminished competitive position. It is becoming clear that if Google keeps the most advanced Android code for its own device experience, Motorola will have a hard time competing with a consistently inferior OS. Other leading OEM's are not taking the bait and are investing in their own software platforms so they can differentiate their offerings. Samsung has announced "bada" and Nokia is overhauling S60. HTC also announced today they are launching a Smartphone based on BREW of all things which may be anther indication of waning support for Android. Without major device manufactures launching compelling Android devices, Google looses influence in the market and will not have to power to change it. Google's ultimate goal.
   

   
   

4. Google can afford Motorola and it is for sale-For more than a year Motorola has had the for sale sign out side the handset business which is probably worth $ 1-2 billion USD. Google has over $21 billion in the bank.
   

I think Google would rather not be in the hardware business but it seems they are already in it, why not go all in.