On Monday, August 15, 2011, came Google’s announcement that it is buying Motorola Mobility Holdings Inc. for $12.5 billion approximately, making it Google’s largest acquisition. This shows that the internet giant is now serious about expanding and going beyond its core business interest to compete directly with other mobile phone makers.
Google has said it will pay $40 per share in cash for Motorola—a 63% premium over the closing stock price of Motorola Mobility shares last Friday. What does this do for Android? So far Google has only overseen the mobile business from a distance and has not yet entered the manufacturing or design aspects in a major way.
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers,” Larry Page, Google’s CEO, said in a statement.
Now with Motorola to shine the light on it, the Android operating system will have better armor in the form of patents to protect its manufacturing partners, such as HTC and Samsung, from major tech players Apple and Oracle. The latter have sued either Google or its partners over the past few months in order to blanch out the competition or simply to extract licensing fees!
Consumers sure can look forward to better smartphone technology and a better product from Google and Motorola now, though carriers have less to look forward to, what with one more super-powered manufacturer to deal with!
is an Marketing Expert and a regular contributor to online sites. He likes reading articles on the marketing industry and has been a part of discussions on many boards and forums. Jayden can be followed on Twitter