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Google acquired Motorola Mobility for approximately $12.5 billion last August. Google dug deep into its cash reserves to bring the acquisition to fruition — an action indicative of the amount of importance it attaches to the exercise. According to Google co-founder and CEO Larry Page, Google stands to gain a lot from the Motorola Mobility acquisition — deeper expertise with Android smartphones and video solutions and home devices. However, the more compelling reason really seems the goldmine of patents Motorola Mobility has right now. The acquisition will right away give Google a head start in the patent war with Apple, Microsoft and other corporations.
How is Google Viewing the Acquisition?
Google has already spent about 32% of its cash reserves (which is approximately $39 billion) on the acquisition. It has bought each Motorola Mobility share at a premium of 63%. Also, Motorola Mobility will be running as an independent business unit. These facts probably indicate that Google was highly keen, if not desperate on the Motorola Mobility acquisition.