Google and its CEO, Larry Page, has acquired cell phone giant Motorola Mobility for $12.5 billion in cash – a 61% premium. The move is a game-changing one, meaning that Google is no longer merely an operating system provider, but now has the means to compete directly with Apple and other handset makers who currently use the Android system.
Previously, it was seen that no other platform could compete with Apple’s integrated software/hardware setup – until now. With Google’s $35+ billion in cash, followers are rife with anticipation as to what they’ll do with it.
What remains uncertain at this point now is if Microsoft will now be forced to purchase another handset maker, such as RIMM or Nokia, or if Microsoft actually benefit from the turn of events as the remaining handset makers like Samsung may turn to Windows.
On the subject, Page said in a Google blog post, “Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”
See Larry Page’s full Google blog post on the subject here.
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