Wednesday, August 17, 2011

Google acquiring Motorola Mobility

August 17, 2011

Google Inc. said that it will pay $12.5 billion for cellphone maker Motorola Mobility Holdings Inc., the biggest acquisition in the Internet search giant’s history and one designed to make it a more formidable competitor to Apple Inc. and its iPhone.

More and better smartphones for consumers will be the result Google’s Chief Executive, Larry Page said. Google, producer of the popular Android software for smartphones and tablet computers, will now be able to make its own hardware once it owns Motorola. Motorola manufactures Droid smartphones and tablet computer, Xoom.

To protect Google and its Android software for smartphones and tablets against a host of costly patent lawsuits filed by its rivals, is the reason behind the strategic move. Thousands of patents which Motorola holds, will now be owned by Google. Android products are “under threat from some companies who are looking to use patents to compete,’’ said David Drummond, Google’s chief legal officer.