In the biggest deal Google has ever made, the developer of the Android operating system has announced that it is acquiring Motorola Mobility for $12.5 Billion Dollars.
In the process, Google acquires over 17,000 patents held by Motorola which it can use to negotiate against competitors such as Apple and Microsoft.
Prior to today’s announcement, Google, Apple and Microsoft had already spent more than $5 Billion dollars this year which they are already leveraging to strike deals, initiate lawsuits against other players in the mobile space and collect fees.
In an interview with Bloomberg.com, Steve John, managing director at attorney search consultants Major, Lindsey & Africa LLC in San Francisco stated, “The world of intellectual property, and more specifically patent transactions, is really heating up. There are a number of technology companies that are essentially retooling how they think about patents.”
Google’s Android Operating System is the biggest threat to Apple
Google is the most used software for smartphones with the top devices being manufactured by three key players: Samsung, HTC and Motorola Mobility. Apple has sued all three companies complaining that that they copied the iPhone device and has filed patent-infringement suits in the USA, Europe, Asia and Australia.
With the mobile-phone market predicted by ISH Inc. to grow by 34% to over $206 Billion this year, there is quite a big “revenue pie” at stake and with this acquisition, Google has picked up some serious weapons.
In the interest of full disclosure, I do not work for Google nor do I receive any type of compensation for speaking well of their products but my main smartphones is a Motorola Atrix 4G and my preferred Tablet is a Motorola Xoom – both excellent devices.
With this announcement, I am very much looking forward to wherever the technology will go and how seamlessly integrated these devices will become with Google’s services.
Questions to Rock Your Mind:
What do you think about this acquisition and do you think Apple should be worried?
Do you believe this move by Google will help or hinder further innovation on the Android mobile operating system?
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