In a news that has sent shockwaves in the business community, Google has announced that it intends to takeover Motorola. The price has been fixed at $12.6 billion. This amount is 63% in excess of the present share value of Motorola. The takeover is clearly to aid the manufacture of exclusive Android based mobiles. Just a couple of days back, Nvidia had announced the release of a new and powerful Kll-El quad core processor that would power Android tablets and be launched in the market by the end of this year. This announcement by Google confirms the fact that Google is serious on bringing out exclusive high-power and low energy consuming devices. Nvidia had also suggested Motorola as a potential candidate that could be used to launch the new tablet.
With the takeover of Motorola, the mobile phone and gadget industry is definitely expected to undergo a major change. Although the intentions of both the companies involved in the deal have been made clear, permission from the government bodies is being awaited. However, the deal is expected to go through without fuss. Google now stands very tall in the mobile phone world. While the Android software had created a huge wave in the mobile phone and tablet industry, the acquisition of hardware manufacturer will definitely make the company more comprehensive and powerful.
The acquisition is also likely to help Google in the patent war that has been going on with Apple and Microsoft. The total number of patents registered with Google is more than 17,000. Besides, some of the most popular and successful phone manufacturers have begun to use Android for their phones. The repercussions that this deal will have with regard to patent war are to be seen since all of Motorola patents now belong to Google. The additional patents may be cause for further lawsuits against the company. As of now, Motorola is already facing lawsuits from Microsoft.
By making this acquisition, Google is empowered not just in the phone and tablet industry, but also in manufacture of set top boxes, which is going to boost the service of Google TV. Google has confirmed that Android will still remain an open source system and other companies such as HTC, Samsung and LG can still use the software. Experts are now speculating on the effect that this deal will have on Apple. While many of them say that it will not make much of a difference in short term, the long term effects are to be watched out for.