Google-Motorola Deal to Change Smartphone Landscape (8:12)

Posted on by Abby Johnson |

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Last month, Google made a somewhat surprising announcement when it said it was acquiring Motorola Mobility for $12.5 billion. The acquisition is Google’s largest to date, and it also weighs in as Larry Page’s boldest move since becoming CEO.

The deal, obviously, raises some issues given that it would give Google a hardware business to run in addition to its Android platform. Although Google has said it would run each business separately, there have been some questions raised about how it would effectively do this. Bryan Gonzalez, the Director of Social and Digital Media Technology Labs at the Entertainment Technology Center at the University of Southern California, told us that it would be hard for Google not to encourage Motorola to develop the best mobile phones.

The merger would also give Google Motorola’s patents to help it fend off lawsuits from Apple and Microsoft. While the deal could be very beneficial to Google, the big question is if it will pass regulatory approval. Do you think it will, especially in light of all the scrutiny that the AT&T/T-Mobile deal has gotten?

Posted in: Mergers and Acquisitions, Mobile
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