Google Buys Motorola Mobility with $12.5bn Purchasing Price

The head topic today focuses on acquisition: one of the largest mobile phone manufacturers Motorola Mobility is purchased by Google at $12.5bn (£7.7bn), which has been regarded as an important move to challenge Apple as a smart phone manufacturer that with the hope of taking a bite out of iPhone maker’s share of the smartphone market.

Since January 2011, Motorola has been split into two parts: Motorola Mobility and Motorola Solutions. Motorola Mobility is mainly responsible for the production of smartphone and TV set-top box products.

Google announced today that it has signed the final agreement with Motorola Mobility and from then on Google will pay $40 a share in cash for Motorola—a 63pc premium to the closing share price last Friday—in what analysts described as an “aggressive” move by the web search giant. The deal has been approved by the board of directors of the two companies.

Motorola is one of the partners focuses on Android platform, the acquisition will greatly strengthens Google ecological system as well as enhances the competition in mobile computing area. Motorola Mobility will be licensed by Android system and Android system will remain open. Google will operate Motorola Mobility as an independent business.

What should be mentioned is that in the official press release, the acquisition is mainly for gaining patents. Observers claim the deal is really about Google gaining ownership of Motorola’s 17,000 patents and 7,500 pending patents – a massive armoury it can use to defend the mobile phone producers using its Android operating system against a steady stream of legal battles over infringements of intellectual property.

Motorola has produced a series of mobile phones with great popularity in the past, one of the most popular is Motorola Droid X series, which enables you to fulfill your visual enjoyment to the utmost. And more new smart phones have been added to the rank, for example, Motorola Atrix 4G, Motorola Milestone 2, Motorola Defy, Motorola Flipout, etc. Google phones are running on Android OS, and according to the report Android OS is most adopted by smart phones in the world. You can also enjoy more with Android phones, convert video to Android phone or play DVD movies on Android phone, both can satisfy your needs. When the two coping with each other, it is for sure that in the near future or in the long run, there will be a smart phone that can completely challenge Apple iPhone.

Read More:

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