Google Acquires Motorola for $12.5 Billion

google in newsGoogle has acquired Motorola Mobility Holdings Inc. for $12.5 billion.

The acquisition will provide Google with solid footing in a highly competitive and increasingly fluid enterprise.

The acquisition can help Google in two very important ways.  First and foremost is the direct impact it will have on their competitors in the open market.  Apple and Microsoft will have to start considering similar actions.  Secondly, Motorola has 17,000 patents–owning the rights to these patents will help them compete in the courtrooms as well as in the market.

Holding a large number of patents can give a company greater leverage in cases of intellectual property infringement.  Google will be able to throw their weight around and greatly hinder the progress of competitors with devices similar to theirs.

The acquisition will have effects on the industry that are broad in its scope.  Huge tech companies will be looking to make similar moves to strengthen their footing.  Struggling companies like RIM will have to try to withstand the blow.  Developers involved with two or more companies at once may even have to decide who they should provide more loyalty to.  It truly will be an evolving market-place.

 

SOURCEwww.latimes.com       

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