Motorola Acquisition Wipes $5bn Off Google Stock

The share price of Google Inc has been steadily falling since the beginning of the day amidst concerns that the search engine giant might have bitten off more than it can chew, after having announced this morning the acquisition for $12.5 billion of beleaguered mobile phone manufacturer Motorola Mobility.

Shares of Google are currently down 2.6 per cent to $549 and they are continuing to fall at the time of writing. In comparison, the shares of two of its fiercest competitors, Microsoft and Apple are up 0.77 and 1.52 per cent respectively.

The Motorola purchase has already wiped out around $5 billion and seemingly spooked investors given that the acquisition could jeopardise the thriving but increasingly under-fire Android ecosystem.

Could it be that Google is trying to save at least one mobile phone manufacturer ahead of a looming war over patent and IP violations, involving Microsoft, Apple, Oracle and others?

If that's the case, why not Sony Ericsson (ed: Sony Ericsson may have a Windows Phone handset in the pipeline). Either way, Google will have to calm potentially nervous investors (and partners) over the outcome of the Motorola deal or this could prove to be a poison pill for the company.