Google has announced in a blog post that it has finally acquired Motorola Mobility after all the necessary formalities. The announcement came from no other than Larry Page himself who announced the closure of $12.5 billion deal after many regulatory hurdles and procedures had been completed successfully. Larry Page has said that he is very excited to announce the successful completion of the deal. He also praised Motorola saying that it was a great tech company with very long history of innovation. Moreover, he credited Motorola with the creation of first cellphone, stating Motorola was one of the first companies who embraced Android OS for smartphones.
In a somewhat surprising move, Google also announced that the present CEO of Motorola Mobility Mr. Sanjay Jha has been replaced with a ‘long time Googler’, Mr. Dennis Woodie. Mr. Page said that Mr. Woodie was his long time acquaintance. He also painted him as a man who was great at building teams and delivering results. Mr. Woodie was recently the president of Americas region of Google. Previously he had led the effort to establish Google in Middle East, Russia, Eastern Europe and Africa.
Google first came out with the intention to buy Motorola Mobility in August last year. The primary intention of Google at the time was to grab huge portfolio of 17000 patents to protect Android OS from patent onslaught by Apple and Microsoft. However, analysts have also believed that Google could benefit a lot from using Android OS in the products of Motorola Mobility like tablets, smartphone and set-top boxes.
Google and Motorola Mobility deal has gone through strict regulatory scrutiny. Google had won all the regulators’ approvals except China. However, China has also granted approval of the deal over the last weekend. The approval of the Chinese regulators came tied with one big condition. They have made it mandatory that the Android Operating System shall have to remain free for next five years for usage on smartphones.
Google’s future plans on Motorola Mobility are still not very clear. However, there is no doubt that Google attaches a lot of significance to this deal and that is reflected in the announcement of the closure of the deal by Larry Page himself. The surprise move of removing the incumbent CEO of Motorola Mobility also means that Google has got some big plans for Motorola Mobility. Only time will tell if Google has also planned other leadership and strategic changes for Motorola Mobility.