Motorola Acquires Major BlackBerry Rival

Motorola Inc. has announced the acquisition of Good Technology Inc., the primary software producers of what is considered to be a major rival of BlackBerry handheld devices. The move accentuates Motorola's attempt to expand its popular cell phone division in an effort to meet high consumer demands for other electronic devices.

Good Technology, a privately held firm that provides software for the Palm Treo, will join the Motorola mobile devices unit, which has already developed an established reputation due to the increasing popularity of the Razr camera phone. (Source: technology.canoe.ca)

The move will likely strengthen Motorola as being considered a leader in mobile devices and solutions, while customers and consumers of products produced by Good Technology are expected to be receptive towards the new line of Motorola devices. (Source: networkworld.com)

Already, shares in Motorola rose 18 cents to close at $21.38 on the New York Stock Exchange.

This is to be Motorola's second venture into the field of electronic devices. Earlier this year, while hoping to quickly establish a second Razr-like craze, Motorola introduced a handheld device called the Q in an effort to compete with the BlackBerry and Palm Treo (which ironically uses the software produced by Good Technology). (Source: technology.canoe.ca)

While the response for the Q has been somewhat lackluster, Motorola feels as though the purchase of Good Technology will likely provide them with better software capabilities and allow the company to reinvent their image when confronting the field of handheld electronic devices.

The deal is likely to be considered terrible news for Palm Inc., makers of the Treo handheld device. In addition to losing its major software provider, Motorola's electronic endeavor will add another competitor in the handheld market. (Source: networkworld.com)

In the past, Good Technology had offered its own handheld devices prior to the Palm Treo. The company has since focused primarily on its software and services division.

The deal is expected to be declared official in early 2007.