In what could be seen as a shocker for the other mobile giants, here comes the news of search giant Google’s acquisition of Motorola Mobility for a whooping $ 12.5 billion in cash. At the time of the last count Google was worth $39 billion. Motorola Mobility which is a dedicated Android partner will enable Google to supercharge the Android ecosystem and try to gain supremacy in the mobile industry throughout the world with the acquisition.
What needs to be kept in mind is that Motorola Mobility is still the licensee of the Android and Google will run the Motorola Mobility as a separate entity. In a press statement by the co-founder of Google, he says that this move was very important for the two companies in order to protect themselves from the patent issues regarding the other giants like Microsoft, Apple etc. He also says that the acquisition was done with a lot of thinking as Motorola is very successful in the mobile industry and home appliances apart from emerging in the video solutions business as well.
According to the company’s website it has 14,600 granted patents and 6,700 pending patents worldwide. Prior to the acquisition, Motorola Mobility used to be the mobile devices division. It can be remembered that Motorola took on the industry with the launch of the “Droid” and going fully android. Later the advanced versions namely “Droid X” and “Droid 2” came into the market .In a statement issued by Google, it says that the company has entered into an agreement where it will acquire Motorola Mobility for $40.00 per share in cash, a total of $12.5 billion which amounts to o premium of 63% to the closing price of Motorola Mobility shares on the last day before acquisition, the deal was approved by the board of directors (BOD) of both the companies.
Well, lot has been said about the acquisition from both these companies but one can understand that the main aspect with which the deal was done is to emerge out supreme as far as the market and sales are concerned as this is what any company will be hoping to do at the highest level. The deal comes in the wake of stiff competition from the other giants. So, one can say that this is an intelligent move from Google to tackle the competition.
So, let us see how this works out finally in the future.