Google to supercharge Android with Motorola Mobility acquisition
Google has shocked pretty much everyone this morning by announcing a deal worth 12.5 billion in cash that will see the company acquire smartphone maker Motorola Mobility.
The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.
While Motorola has always been an ally to Google and Android, the deal is seen by many has a direct response to patent-related legal issues that have recently plagued Android and smartphone makers alike. There was talk recently Motorola would seek royalties from Google related to patent infringement. The acquisition will not only allow them to avoid royalties, but also allow them to greatly strengthen their patent portfolio which has recently come under attack.
However, The WSJ reports the deal isn't necessarily set in stone. Google has some legal hurdles to get over before they avoid a $2.5 billion reverse termination fee and close the deal. The report notes that's a an especially high fee of approximately 20 per cent, in comparison to the average 3 per cent. Here's to hoping in turns out better than the failed Groupon acquisition.
Important bits from the press release below, if you're interested.
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences
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