Google buys Motorola Mobility for 12.5 billion USD


This news bit has certainly come out of nowhere. There was absolutely no indication of any kind, that Google will opt for actually acquiring a cellular manufacturing operation. According to Google blogpost on the same topic, their primary motive seems to be Moto's wide variety of cellular patents - which currently reside at over 17,000 wireless-related patents with 7,500 more pending. Given this, it's a game changing move by Google, in the light of massive efforts on part of Apple and MS to launch lawsuits against against Android OEMs.

The search giant has opted to make the acquisition at 12.5 billion USD i.e. 40 USD for each share.

In words of Larry Page:

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.

If this deal will actually be allowed to go through by the US authorities; it shall give Google control over Motorola's plethora of cellular patents, allow Google to have rock solid integration with Motorola produced Android handsets and actually be able to make money out of sale of Android handsets.

All in all, this is an ace move by the sly player out of Mountain View.