Image Source: CNN Money
Keeping the recent boom in mobile technology in mind, it is more of a surprise than a shock that Google decided to acquire Motorola Mobility Holdings, a major player in the global smartphone market. The deal is valued at nearly 12.5 billion USD, over 60% more than Motorola’s current market valuation based on stock prices. Given the huge popularity of Google’s Android OS, crossing 150 million users recently, this move on Google’s part is viewed by analysts as a huge game-changer in the Mobile Technology market. Google’s CEO Larry Page posted on their official blog, announcing the acquisition of Motorola as a major step towards boosting the popularity of the Android, enhancing the competition in the mobile technology segment and thus offering consumers more innovative and varied features to choose from.
HP’s acquisition of Palm had left Google as the only player in the mobile technologies market which didn’t produce both the software and hardware aspects of the devices, as opposed to Apple and RIM. Ever since the entry of Apple’s iPhone and the Android OS, Research In Motion (RIM) had been rapidly losing ground. As opposed to popular rumors, Google has made an official announcement that the Android OS will be available to all handset manufacturers despite it’s ownership of Motorola. This has re-affirmed the faith of competitors like HTC in Google’s intentions of keeping the Android an open and ever-improving platform for mobile devices.
Following a very disturbing move by Apple, Microsoft others to acquire Nortel in order to expose Google to possible future litigations against the Android OS, the acquisition is seen as a defensive step, since Motorola has over 17000 patents, thus strengthening Google’s patent portfolio. As a direct result, Inter Digital’s share prices fell sharply while Motorola’s prices rose by nearly 60%, to end close to Google’s valuation of the deal at $40/share.
Especially for Android and Motorola users, and for mobile device owners in general, this is great news as far variety and pricing of gadgets and software are concerned since the level competition got bumped a lot higher due to the huge combined potential of Google and Motorola in dominating the market in the future.