Friday, February 10, 2012

Google acquiring Motorola

The news of Google acquiring Motorola has taken a lot of hype since last August when Google announced to takeover the Mobile Manufacturing department of Motorola. Now, On Wednesday, the Wall Street Journal reported that the Justice Department would likely approve the $12.5 billion acquisition next week.

The Reuter's article, citing "two people with knowledge of the matter," reported that the European Union's approval would be "unconditional." Rivals had been pushing for restrictions to prevent Google from unfairly promoting its products.

Google have always been in making the software, the Android Operating System which was tested on the Motorola. The acquisition will help Google to develop its hardware side but with no as such knowledge and the expertise in the hardware side can also be a back-draw for the giant Google. 

Motorola, itself was never successful in the mobile phone industry because of their designs and features, after the acquisition Google would have to invest in the research and development of Motorola. It is a risky deal for Google.! 

The stock price of the Motorola might also increase as the approval of acquisition undertakes which will be beneficial for Google. 

I have crossed my fingers and have full faith in Google they can bring the trickle down effect in Motorola but you never know how the market evolves because there is a big difference in Software & Hardware...

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