Google Formally Buys Motorola Mobility For $13 Billion

May 24th, 2012 at 2:26 pm

It has been the talk in industry circles for sometime now. When word got out that online search giant Google was trying to buy mobile device maker Motorola Mobility, it certainly had many concerns and questions coming out. But then there were still some doubts as to whether the deal will close out it was still under review by the regulatory agencies to see if it won’t affect negatively in the market. But now, it has been known that the deal has formally been consummated, with Google paying around $13 billion to get Motorola Mobility.

The deal has allowed Google to acquire Motorola’s more than 17,000 patents with an additional 7,500 pending patents. That alone will help Google a lot especially in trying to ward off those patent lawsuits from competitors that are targeting its Android mobile OS. The deal will give the search giant a formidable trove of patents that can be used as weapons in today’s tech world.

But aside from that, Google may also get in Motorola an established maker of mobile devices that will someday give it a means to enter into the world of mobile hardware. At present, Google only has made many partners among the many of today’s major device makers that integrate the Android OS into their products. With the acquisition of Motorola, Google may now have that option to enter into the mobile device market themselves and making their own Android devices. But this can be easier said than done.

If ever Google may enter the world of mobile devices, it may need to address the concerns of the other partner device makers that it now has. If Google goes through this route, its current partners may become its competitors which might not bode well for better business relationships. Although Google may now be able to challenge Apple in its own territory, it may hand Google the ire of its current partners which can do more harm to the search giant than good.

But whatever Google plans for its new acquisition, it would certainly be worth looking out for in the coming years. It may be a big step for Google to diversify its own business which at present is largely dependent on online search advertising. But while it currently is quite lucrative, having other means of revenue would just further make the company even bigger and better. But each step should be carefully planned out or the opposite result might happen.


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