Monday, August 15, 2011

Google to buy over Motorola Mobility for $12.5b

It seems that the patent lawsuits among Google and its competitors have extended into some eye popping M&A activities.

Despite losing up in the contest for Nortel (which carries 6000+ wireless technology patents) to the joint alliance formed by Apple, EMC, Ericsson, Microsoft, RIM and Sony, Google managed to increase its bargaining chips by snapping up 1000+ patents from IBM in late July 2011. And now, out of a sudden surprise, Google announced its move to acquire Motorola Mobility which carries 17000+  issued patents worldwide and 7500+ pending patents under application process.

Beside gaining a large amount of patents through this $12.5b exercise, by acquiring Motorola Mobility, Google will also move into Android phone hardware manufacturing business and compete with its partners in the Android alliance including Samsung, HTC, LG, etc. Anyhow, Larry Page calmed his fellow Android partners that this acquisition will not change Google commitment to run Android as an open platform, and that Motorola will be run as a separate business.

What impact has this move on the Android community and the entire smartphone market? Time will tell. Hopefully, it will bring more good than bad.

Click here to read the announcement made by Larry Page about the Motorola Mobility acquisition.


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