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Google-Motorola Deal Gets Go Ahead From U.S. and EU

Google-Motorola Deal Gets Go Ahead From U.S. and EU

U.S. and Europeans regulators have finally approved Google Inc's massive US$12.5 billion buyout of Motorola Mobility Holdings Inc - the biggest deal in its 13-year history -, intensifying its competition with Apple Inc. This buyout however, will see regulators keeping a sharp eye on the web search giant to ensure that critical patents would be licensed at fair prices.

Google has already made it known in August that it had plans to acquire Motorola for its 17,000 patents and 7,500 patent applications, primarily to defend itself from messy patent wars with rivals like Apple. This acquisition is significantly a big step for the Internet search company and its popular smartphone Android operating system - the company can now manufacture its own phones, tablets and other relevant consumer devices without leveraging on other manufacturers. On the flip side, it is a market that it has practically no experience in, leading investors to worry about the state of the company's future profit margins. However, there are those who are more optimistic about the deal:

Los Angeles Times - The pairing could benefit both companies. Motorola Mobility has struggled to keep up with Apple’s iPhone and other smartphones from rivals such as Samsung. And Google is looking to get search and its other services on as many devices and in as many consumers' hands as possible, said BGC Partners analyst Colin Gillis.

"What this means: Get ready for inexpensive hardware," Gillis said. "Google is about to chase a whole new business model. It’s going to get hardware out to consumers at low to no cost and make it up in services, because the only way to beat Apple is on price."

Source: Reuters, Los Angeles Times

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