Google Purchases Motorola for $12.5 billion

by Paul Wilson | Monday, May 21, 2012 | 1169 views

Just days following the approval of the deal by the Chinese Government, Google completed its purchase of Motorola Mobility, the mobile maker, for a price of $12.5 billion.

In its statement , Chinese government asked Google to keep the Android software available to other mobile manufacturers for a period of five years. The present acquisition by Google , is its biggest till date. Following the deal , the searching giant on the web , Google, has also named a new management team which will take over the mobile handset maker.

Motorola is one of the leading makers of smartphones and other devices. The takeover of Motorola, allows Google to enter the phone manufacturing and tablet making business for the very first time.

Just a few weeks back, CEO of Google Larry Page in his blog had said that the present generation of smart phone and other device users might never use desktops again. With the size of the computer going down and the mobile devices becoming the new super computers has changed the way we use technology today. We have entered a state where we can imagine doing things which we once thought were possible in science fiction movies like giving direction to a device for playing videos and taking pictures and sharing it instantly with others, he said.

He also mentioned that Motorola had a long standing history of developments in technology. Motorola has had a long history of driving revolution in the innovation industry for over 80 years now and has been one of the greatest American Tech companies of all times. Motorola was also the first maker of cell phones. According to Page the company saw a future for the business where mobile devices will be changing the lives of millions for many years to come.

The new deal also gives Google access to over 17,000 patents that are owned by Motorola. The Chinese authorities cleared the way for the deal after Google agreed upon keeping Android available for other mobile making firms for a span of minimum five years.

The European Commission also granted its approval to the deal , it did not seek any confirmation over Android to Motorola ,as Motorola being a very minor player in European markets. The government of U.S has also given its approval to the deal.

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