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Google Acquires Motorola for $12.5 Billion

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Google CEO Larry Page announced today that Google has purchased Motorola Mobility. The acquisition came at a hefty $12.5 billion making this Google's biggest company takeover to date. According to Page's[URL="http://googleblog.blogspot.com/2012/05/weve-acquired-motorola-mobility.html"] blog post[/URL] this morning, the deal was officially closed. [URL="http://gigaom.com/topic/google-buys-motorola/"]Gigaom [/URL]answers the question "Why Should We Care?": "Google is spending $12.5 billion to acquire Motorola Mobility, the handset and set-top box maker that pushes Google into the hardware business and is a major upheaval in the fast-growing Android ecosystem."

[URL="http://money.cnn.com/2012/05/22/technology/google-motorola/index.htm"]CNN Money[/URL] further explains how Google will benefit from this merger: "Buying Motorola gives Google ([URL="http://money.cnn.com/quote/quote.html?symb=GOOG&source=story_quote_link"]GOOG[/URL], [URL="http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/11207.html?source=story_f500_link"]Fortune 500[/URL]) access to more than 17,000 patents, plus an extra 7,500 that are awaiting approval. The search giant said it plans to use those [URL="http://money.cnn.com/2011/08/18/technology/patent_bubble/index.htm?iid=EL"]patents to ward off lawsuits[/URL] from Apple ([URL="http://money.cnn.com/quote/quote.html?symb=AAPL&source=story_quote_link"]AAPL[/URL], [URL="http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/670.html?source=story_f500_link"]Fortune 500[/URL]) and Microsoft ([URL="http://money.cnn.com/quote/quote.html?symb=MSFT&source=story_quote_link"]MSFT[/URL], [URL="http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/3063.html?source=story_f500_link"]Fortune 500[/URL]) that threaten Google's popular Android mobile operating system.But some industry experts believe that Google is after much more than a patent mine. It's now playing in Apple territory. Buying Motorola gives Google the ability to control both hardware and software, by making its own integrated smartphones and other devices.
"With this acquisition Google can also come up with equivalent of Apple TV, Roku, and tablets," says Sandeep Aggarwal, an analyst at Digital Route.
Hardware has become an important arrow in tech companies' quivers -- it helps keep people within a software company's ecosystem. Amazon ([URL="http://money.cnn.com/quote/quote.html?symb=AMZN&source=story_quote_link"]AMZN[/URL], [URL="http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/10810.html?source=story_f500_link"]Fortune 500[/URL]), for instance, bundles its e-books and media with its Kindle e-readers and Fire tablet."

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