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Google acquires Motorola Mobility for $12.5 billion

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Google has announced acquisition of Motorola Mobility worth 12.5 Billion US$ (40$ per share). Motorola Mobility is the richest patent portfolio which will help Google grow its Android Market to highest extent. Keep in mind that it is not the complete Motorla which is being purchased by Google rather its only the Motorola Mobility which deals with the mobile handset business is being acquired. Last year Motorola was split up into Motorola Solutions dealing with Motorola Telecom Equipment Manufacturing and Software solutions and the other one was Motorola Mobility dealing with mobile handset business.

Motorola is currently offering 32 handsets out of which 21 are Android and having 3% share in the market this year as per Nasdaq. Moreover, Motorola Mobility has over 17,000 active patents in their kitty as per  blog post on Google’s official blog which are more than enough for Google to win the battle for Android.

In the deal with Motorola it is expected that every one from Android community will have access to Motorola when the deal is finalized.Google is not planning for a merger rather it will run Motorola Mobility as a separate company, Android will remain as open source and Motorola Mobility will keep on paying Google for the Android Licences but the overall integration of Android into Motorola will be even deepened. As Google was under serious pressure due to Android legal issues it is expected that this deal would be a major sigh of relief for Google and is being termed as favorable for Google by CEOs of HTC, LG and Sony Ericsson.

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