So here’s the run down: Monday morning, Google announced they plan to acquire Motorola Mobility Holdings Inc. for $12.5 billion. Larry Page, Google CEO says, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”
Motorola ‘bet big’ and backed Android as the sole operating system on all of their smartphone devices since 2008, showing extreme Google-loyalty. The plan is for Motorola to continue on as a separate entity from Google, governing under Motorola CEO, Sanjay Jha.
So what’s the deal, why now? It seems Google’s primary motivator to Motorola can be broken down by the simple equation: 17,000 patents + another 7,500 patents in progress= Android software protection against anti-competitive threats from Microsoft, Apple and others.
The Federal Trade Commission still needs to approve the transaction (although it seems likely), but is projected to close at the end of 2011 or start of 2012. What are your thoughts?