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Google has long been pursuing its ambition to acquire Motorola Mobility. Both companies agreed to the acquisition, raking in a whopping $12.5 billion. However, they needed clearance from regulatory authorities in Europe, America as well as China to go ahead with the deal. While American and European authorities had already cleared the deal, Google now has received the go-ahead from Chinese authorities too and has finalized the deal.

As part of the acquisition, Google had already announced that it will be replacing the current CEO of Motorola, Sanjhay Jha, with Dennis Woodside who has been part of the Google team for quite some time.

In a post by Larry Page, Google’s CEO, about the finalization of the deal, he wrote, “I’ve known Dennis for nearly a decade, and he’s been phenomenal at building teams and delivering on some of Google’s biggest bets. One of his first jobs at Google was to put on his backpack and build our businesses across the Middle East, Africa, Eastern Europe and Russia. More recently he helped increase our revenue in the U.S. from $10.8 billion to $17.5 billion in under three years as President of the Americas region.”

He also wrote eulogized Motorola in his post, “Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone. We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices.”

Clearly, Google plans on turning around Motorola and making it even more profitable. However, the main reason why Google has acquired Motorola Mobility is because it has a huge repository of patents to its name, something which can be very valuable in a legal feud.

And Google is currently facing a lot of these legal battles because of its Android platform. Many have alleged that Android infringes a number of patents and Google has been trying to fend this off. With Motorola and its thousands of patents in hand, Google will now be able to put up a lot better fight.

Source: Google

Courtesy: CNET

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