Yes the heading that you just now read about the famous mobile phone company Motorola Mobility has been acquired by Google Inc. And the price is a whopping $ 12.5 billion that comes to around $40 per share. Google has gone for this deal keeping in mind the Android platform which it wants to promote even more and cut all competition from rival platforms and OS currently in the market. The move has been approved by the both the companies’ board of directors and they gave a thumbs up for the deal.
Google owns the famous Android platform and Motorola has been in the mobile phone market for long enough to make superb phones. Combined together, these two giants could well take over the market by storm and cut competitions from all sides very easily. Google wanted more buyers of the Android phones and not to forget that Motorola was trailing behind in the mobile phone sales until it introduced the Android phones like the famous and highly capable and laudable Motorola Xoom and Motorola Droid into the market. It was only when they had brought more Android phones that they regained popularity and were back in the game. Motorola is today one of the leading Android smartphone manufacturers, followed by Samsung, HTC etc.
There are speculations in the market, now that Google will control the mobile phones from Motorola, so they will give preference to the Motorola phones when any new upgrade comes to Android platform and Samsung and HTC being big players could be hit badly. Now, it would be a pretty bad idea if the phone manufacturers like Samsung and HTC will be not given importance and if they turn to other competing platforms available in the market, then it will be a big bad loss for Google. You can have a look at the Samsung Google Nexus S phone.
However, Google rubbishes all these market speculations by saying that they will keep Motorola as a separate entity and not let the other Android smartphones manufacturers down in any case. They want to bring more Android phones to the people. Google CEO Larry Page was careful to note both that the “acquisition will not change [Google's] commitment to run Android as an open platform” and that “[Google] will run Motorola as a separate business,”
Here is what Google said:
“Given Android’s phenomenal success, we are always looking for new ways to supercharge the Android ecosystem. That is why I am so excited today to announce that we have agreed to acquire Motorola.”
“The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. I am confident that these great experiences will create huge value for shareholders.”
“The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.”
Let’s just wait and what and see what Google and Motorola plan to pull out from their hat.
