Wednesday, August 17, 2011

Google paying $12.5bn to get hold of Motorola Mobility

Google has announced that it will buy Motorola’s phone division in a deal set to close by year end. Google which launched the open source Android OS in 2008 stated Motorola mobility will be run as an individual trade and the firm will remain a licensee of Android. The search engine giant also said that by doing so it will remain as an open platform for every company.  Larry Page, CEO of Google said that this step would boost Android’s ability to fight against the anti-competitive attacks direct at the Android Platform.

He further added that acquisition of Motorola handset division will raise competition by empowering Google's patent portfolio. Google has worked with Samsung and HTC to make its Nexus range phones. Till now it has control over hardware design only but after this deal Google will release mobile phones that are completely in-house made-like iPhones and BlackBerrys. Google buys Motorola mobility for US$12.5 billion (£7.7bn). Larry Page also said we are very happy and we are welcoming Motorola with open hearts. It seems that Google is expecting a very bright future. An announcement from both organizations disclosed that the transaction was collectively approved by both firms.