Google Buys Motorola for $12.5b

Google Buys Motorola

The world’s fastest and largest search engine Google has acquired Motorola Mobile for a staggering US$12.5 billion. This is the largest investment made by Google and the move is seen by analysts as a major move in the mobile market which is dominated by Apple and the Android platforms. While Nokia is currently working with Microsoft to develop their new generation of mobile phones and Apple’s iPhone leading in most market, this would be Google’s answer to the tight competition in the mobile world which is surely heating up.

The acquisition of Motorola is seen as a move to strengthen its stand in the Android operating system which is being used by major manufacturers like HTC, Samsung and previously Motorola. So far, Google’s Android OS is used in the OEM market and now that they have access to the hardware technology, it is not clear how Google will be positioning itself in the mobile market.

One of the short term benefit could be that from the Google TV Web television service. Google however has assured its 5 top OEM partners that the Android will continue to be an open source OS which will ensure continuity for them, but analysts believe that this might cause some to migrate to the Windows 7 Mobile OS should Google decide to go solo.

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