China Gives Google Go Ahead To Purchase Motorola Mobility Holdings
Google and Motorola Mobility Holdings received some good news on Saturday when officials in China approved the $12.5 billion purchase which was initiated and announced by Google in late 2011. Under the acquisition it is expected that Google will begin to develop and manufacture its own line of smartphones.
The acquisition has been closely scrutinized by governments around the world as it will immediately provide Google, Inc. with thousands of mobile patents that it can use to create technology and also hold competitors hostage in an ever increasing patent lawsuit environment. Motorola currently holds more than 17,000 patents and 7,500 patent applications.
The Google/Motorola Mobility merger was approved by U.S. and European regulators in February 2012, a move that left only Chinese regulators to potentially halt the dea.
After China announced its final approval on Saturday Google spokeswoman Niki Fenwick said:
“Our stance since we agreed to acquire Motorola has not changed, and we look forward to closing the deal.”
In the meantime Google’s Android mobile operating system is the best selling mobile OS in the world and that operating system will remain free and open for five years in order for Google to receive Chinese approval for the buyout.
Also speaking about the deal was Motorola spokeswoman Jennifer Weyrauch-Erickson who said of the Chinese approval:
“We are pleased that the deal has received approval in all jurisdictions and we expect to close early next week.”
Do you think the Motorola Mobility acquisition will allow Google to make a huge splash in the smartphone market?