The Score: Google Says Change is Good

By Sandy Fitzgerald | Fri Feb 24, 2012 10:52 am

Google's rapid changes for Motorola are starting to need a scorecard of their own -- not that CEO Sanjay Jha likely will be around to see much of it.

Jha, who had been Motorola's CEO for years, appears to be on his way out while Google marches towards dominating television and just about everything that has an on-off switch.

The Score is a weekly column scoring controversial events in the mobile industry. Want to get to the point? We'll break it down and give you the score.

The Setup: Google has been a part of the search engine world for so long, it's become more than a website; it's now its own verb. The folks over at Microsoft only wish lovesick women would say they're going to "Bing" their old boyfriends, but that's not going to happen.

But Google became more than just a great search engine when it came out with Android, which powers everything Apple and the Hoover Dam doesn't. So when you're on top like Google is, you can either stay there and enjoy the view from your perch while everyone else tries to bring you down, or you can make your perch stronger.

Since Google arguably controls the Internet and most smartphones, it's looking at another way we entertain ourselves. And let's face it, we can watch movies and television on our laptop screens or on our smartphones, but if you've got a 42-inch television screen sitting over in the corner, who wants to look at Daniel Craig on a tiny screen when "The Girl With the Dragon Tattoo" is released for home viewing?

Google didn't get where it is without taking some bold steps along the way, and does anyone really think it bought YouTube just to make it easier for people to watch cute kitten videos?

The Mountain View, Calif-based company is seeking approval to offer TV service in Kansas City, Mo., where it is building high-speed Internet service, and where Time Warner Cable already provides bundled services. Google: 1,000 points The moves are paving the way for a Google-branded paid TV service, which could launch in the next several months. Google's already in talks with Disney, Time Warner and Discovery about distributing content. Not only that, but go to YouTube sometime and click the movie button -- and don't be surprised when you see the many new top releases that are already available for rental. Google's serious about this entertainment thing. Google: 2,000 points Google Fiber made the Missouri filings, in addition to constructing the fiber optic cables in Missouri and Kansas that would deliver high-speed service. These cables run 100 times faster than what's available. Many people don't realize that while Kansas City is a major metropolitan area, it's surrounded by hundreds of miles of rural areas that don't yet receive high-speed Internet service or even cable television. With its service, Google's offering will likely find a strong audience. Google: 500 points Google also is planning entertainment hardware, in a move to compete with Apple by delivering entertainment services straight to the home. Why not provide the viewing material, too? Google: 950 points Let's not forget Motorola. Google paid $12.5 billion for it, and while the company has a huge packet of patents that will come in handy in all the court cases Apple keeps filing on Android, Motorola is far more than patents. It's a seasoned product maker. If you already have cable television, look at your converter box. It's likely Motorola made it. Google: 1,000 points Google just won't come in and take over television. In Kansas City, Time Warner still holds the market, and if Google expands, it will face an even more powerful competitor -- Comcast. Those companies aren't going to give up ground easily, particularly Comcast, which powers much of the broadband service in the U.S. Google: -500 points

The Score: Google: 4,950 points.

What it means: If Google Fiber succeeds, it could be the service that keeps Google not just atop its pedestal, but bring the company even more untold riches that makes the $12.5 billion it spent on Motorola look like chump change.

Yes, Google has a great search engine and smartphone OS, but they don't charge anyone to use them. So how does Google make its money? Advertising. How does anyone make money on television? Advertising.

Sounds like a marriage made in telecommunications heaven. But will it be long-lived or part ways when one of the parties gets bored or something more attractive comes along?

The Setup: Motorola Mobility is about to go through a lot of changes, including, apparently, the name plate on its CEO's door, as Sanjay Jha appears to be on the way out and Dennis Woodside appears on his way in.

Google hasn't officially announced the switchover -- after all, the Motorola purchase hasn't officially gotten its approved stamp from the U.S. government and Jha hasn't had time to pack up his family photos from his desk -- but the change appears to be only one press release away from happening.

Jha's replacement may put Google's group of Android hardware manufacturers and other partners at ease. A lot of them are worried that Google will start favoring Motorola's phones over theirs, but by replacing Jha with one of its own, Google is showing that it's really in charge of its new purchase and Android will likely continue as usual. Google: 1,000 points Woodside wouldn't be coming into the job just because someone higher up at Google likes him and wants him in a corner office. He oversaw the Google-Motorola deal and led the transition as it progressed over the past several months, which probably should have been a tip-off for Google's plans for him all along. Google: 1,500 points Of course, since the press releases aren't out yet and Jha's still coming to work, Google hasn't officially said Woodside has the job. He's emerged as a favorite from a short list that includes Motorola senior vice-president Christy Wyatt and chief strategy officer John Butcher. But if Google's going to keep a Motorola person, why not just keep Jha? Google: 500 points

The Score: Google: 3,000 points.

What it means: It's not that Jha has done a bad job at Motorola, but he's probably on his way out. It's a fact of life that when one company takes over another one, heads start rolling from the top on down as the new company brings in its own upper management.

But don't cry for Jha. The executive will probably have quite the golden parachute to cushion his fall, and he's going out while he's still on top and has a great record. After all, there are very few companies of Motorola's age and background that are still around these days, and it does have some very strong smartphones to its name. There are a lot of companies who need a good, strong CEO -- and can you imagine a BlackBerry that looks like a RAZR?

Besides, Jha probably isn't very surprised by the decision. That's business, after all, and he's probably not crying in his corn flakes.

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