China on Board: Google Acquisition of Motorola Mobility Now Official

  • Google now officially owns Motorola Mobility after starting the $12.5 billion acquisition process in August.
  • The deal had been stalled since February as the companies waited for China to approve the agreement, which it did over the weekend. Europe and the U.S. had already announced their approval.
  • China was stalling as it questioned Google’s claims that Motorola would continue to operate independently and that Google would not show the vendor favoritism.
  • Before approving the deal, China “forced Google to agree to keep Android open and free for a period of five years to ensure it didn’t change its stance and give Motorola preferential treatment,” according to CNET.
  • The acquisition could help ease Google’s legal issues, since Motorola Mobility holds thousands of patents and patent applications. Google has been involved in numerous legal proceedings over claims that its Android phones violate patents.
  • “Rumors have been swirling for the last week or so that there could be significant layoffs at Moto following the merger, which would further enforce the perception that Google is more interested in the company’s patents than in entering the hardware business,” notes Engadget in a related post.

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