Google completes Motorola buy-out
China – China has agreed to allow Google to acquire phone manufacturer Motorola Mobility in a US$12.5 billion deal.
With this move, Google is looking to expand into the manufacturing of phones, tablet computers and other devices. This will also allow the Internet company to receive more than 17,000 patents, strengthening its patent portfolio against arch rivals Apple and Microsoft.
Google will hence be able to supercharge the Android ecosystem, enhancing competition in mobile computing. The Internet firm will continue to run Motorola Mobility as a separate business.
According to Google's official blog, CEO of Google Larry Page said the CEO of Motorola Mobility Sanjay Jha will be stepping down and be replaced by Dennis Woodside.
However, Chinese regulators laid out that Google's Android operating systems should remain free of charge for the next five years, Associated Press reported.
In February this year, regulators in the US and Europe had already granted approval to Google. Regulators said they will be making sure the US-based company will not use its market position with the buying of the phone maker to obtain an unfair advantage, AFP reported.
"Our aim is simple: to focus Motorola Mobility's remarkable talent on fewer, bigger bets, and create wonderful devices that are used by people around the world," Woodside said.
Last month, Apple and Microsoft lodged a patent war against Motorola Mobility, accusing the company of blocking product competition with its patents. Checks have since been conducted on Motorola Mobility to confirm the allegations.
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