Google Closes $12.5bn Motorola Mobility Deal

Google has finally completed its $12.5bn acquisition of Motorola Mobility after regulators in China gave the deal a seal of approval over the weekend. Having announced the bid back in August 2011, it has taken nearly a year of negotiations and fending off inquiries from authorities to complete the move.

It had been claimed Google would keep its Motorola subsidiary at arm's length, but the appointment of long-time Googler Dennis Woodside as CEO of Motorola Mobility suggests a more inclusive operation.

This move could yet ruffle the feathers of other manufacturers designing for Android, who may fear being marginalised if Motorola receives preferential treatment from Google.

Sanjay Jha steps down as MM's CEO and Google Chief Exec Larry Page has described his replacement as, "phenomenal at building teams and delivering on some of Google's biggest bets" - a nod to Woodside's previous roles in establishing Google in the Middle East, Africa and Eastern Europe.

Writing on the company blog, a delighted Page commented, "Motorola is a great American tech company that has driven the mobile revolution. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google. I'm confident Dennis and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come".

Fallout from the deal also includes talk of Google resurrecting their foray into television. Google TV has been widely regarded as a failure thus far, but with set-top boxes featuring heavily in MM's manufacturing armoury, telecoms analyst Roger Entner believes Page and co will be have one eye firmly set on the television market.

"Google is salivating about getting into the TV advertising business", he said. "And Motorola already dominates the home. Trading a free service - Internet on your TV - for your TV viewing habits which they can combine with your Web browsing habits is the holy grail of targeting."

Source: Bits