Aug 172011
 

Google had announced its biggest acquisition announcement to purchase phone handset maker Motorola Mobility for $12.5 billion.  The Google-Motorola deal is going to upset Apple Inc especially iPhone because Google will be able to manufacture its own Android phones and compete with other phone makers. Google CEO, Larry Page said that the acquisition of Motorola Mobility will create better Android ecosystem for the benefit of users, partners and developers.

google acquires motorola mobility

Meanwhile, Google has only 317 mobile devices patents according to MDB Capital Group report while Motorola Mobility has total 706 mobile devices patents. It means Google now owns more than 1000 mobile technology patents and more than Apple’s mobile patents. Through the help of Motorola Mobility, Google now able to enter hardware industry to better secure its position in the smartphone market.

Google has acquired quite many companies since 2006 and no doubt Motorola Mobility is the biggest deals in Google’s history. Below is the list of the top 5 largest Google’s acquisitions:

Company Acquisition Price Date
Motorola Mobility $12.5 billion August 2011
DoubleClick $3.1 billion March 2008
YouTube $1.56 billion November 2006
dMarc Broadcasting $1.23 billion February 2006
AOL (investment) $1 billion August 2006
ITA Software $700 million April 2011

Conclusion:

I believe the on-going patent wars between iPhone and Android partner (HTC) is the main reason why Google bought Motorola Mobility. Therefore, I would say that this acquisition is a good strategic and will bring better value to Google and Android partners in the long run.

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