Analysts have been watching the Google acquisition of Motorola Mobility with keen interest and today, it would appear that one of the biggest hurdles to this purchase has been cleared with Google having been given approval by both European and US regulators to purchase the company.
The agreed upon purchase price for Motorola Mobility is $12.5 billion and in return, one of the items that Google will receive is access to the vast collection of patents that Motorola currently owns. Regulators have indicated that they will be keeping a very close eye on this deal to ensure that Google does release these licenses to other companies for a fair price. As we know, Motorola has been involved in some ongoing litigation with Apple in regards to patents and licensing fees. Currently, Motorola owns 7,500 patent applications as well as 17,000 patents.
Although the deal has been signed off in both Europe and the US, the deal is still pending ratification within a number of other countries including Taiwan, Israel and China. These countries have until March 20th to decide on whether to allow the deal to go through or push it towards a third round of reviews. Over the last few years, Google’s Android operating system has become one of the most popular mobile OS available and having access to Motorola’s patents will allow the search engine giant to better protect itself against any future litigation. However, it’s important to note that this deal isn’t just about patents as Motorola also provides Google with a proven manufacturing company which means that down the road, we may start to see some Google only hardware such as mobile phones and tablets.