Google Acquires Motorola Mobility For $12.5Billion
Google announced on Monday morning that it had agreed to acquire Motorola Mobility for $12.2 billion. Motorola had, since 2008, made Android its sole operating system for its smartphones.
This acquisition is very unusual for Google. Google usually buys small software startups, not large hardware companies. Google’s CEO, Larry Page says this will help it supercharge the Android ecosystem.
The acquisition also means Google will run Motorola’s home devices and video solutions divisions.
Larry Page also explained that Google’s acquisition will increase competition buy giving it a larger patent portfolio. Motorola’s patents are currently over 17,000 with 7,500 pending, he says.
““Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”
Microsoft, Apple and RIM had recently whipped up a bag of patents at the Nortel patents auction. Google considered this anti-competitive because already manufacturers who run on Android have to pay Microsoft some royalties because Android runs on Linux’s kernel and Microsoft owns some patent parts of the kernel.
Google’s acquisition of Motorola does not mean Google will sideline other manufacturers who run on Android. Larry Page says Motorola will continue to run as a separate business.
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