Google pocket Motorola Mobility as the smartphone war with Apple heats up.

20120523095149b2a48 300x300 Googorola: Moto + Google, Its Official
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Google’s controversial deal to buy the US mobile giant worth US$12.5 bn has formally been approved, Larry Page Google CEO announced in a blog, meaning the Android creators now have their very own phone company to play with.

The $12.5 bn acquisition, announced in August last, was held up as it awaited the official nod from regulators in the US, EU and China who gave the final ok late last week.

Sanjay Jha, has stepped down as Moto CEO as ‘long-time Googler’ Dennis Woodside takes the helm.

“I’m excited to announce today that our Motorola Mobility deal has closed. Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone,” said Page.

So what does a Google-owned Moto now mean?

One of the main attractions for the Android creator was the 17,000 patents Moto own – which could prove crtiical to Android in the ongoing struggle with arch rival Apple over mobile patents ownership.

“The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing,” Google said last year.

Read: Google To Buy Motorola For $12.5Bn As Apple Patents War Deepens

20120523100608c6f19 300x300 Googorola: Moto + Google, Its Official
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And it seems Android top god Samsung along with HTC and LG will be unaffected by the deal, despite Google owning its own hardware brand, with the the giant pledging to give fellow Android carriers early access to OS updates and allow them to sell direct to consumers, a source told the Wall Street Journal last week.

Indeed, Moto’s new boss vowed there will be a “firewall” inside Google and will not ask for special treatment from Andy Rubin, senior vice president Android.

And he wouldn’t get it anyway, Dennis Woodside told Bloomberg this week.

But he will be looking to shake up the Razr maker and add that Google golden touch:

“My job is to make Motorola as successful as possible and deliver innovative hardware as a licensee of Android.”

Google are also said to be shifting away from the practice of collaborating with one maker to produce a flagship device a la Samsung Google Nexus, but will work with multiple brands instead.

“Googorola could have huge ramifications on Android, the world’s most popular smartphone operating system, and others in the cutthroat world of smartphones and mobile devices,” predicts Levi Sumgaysay, Siliconvalley.com.


Among these are “smartphone laggards” like Microsoft, Nokia, Research in Motion. And “Cisco, which along with Motorola has dominated TV set-top boxes. And of course, Apple, whose iOS is Android’s biggest competitor.”

The deal should also reignite the Motorla brand, who has struggled in the face of massive competition from Apple, Samsung, and other phonemakers who joined the very profitable smartphone business.

And Page also reckons there’s plenty more magic to come from the humble smartphone.

“The phones in our pockets have become supercomputers that are changing the way we live. It’s now possible to do things we used to think were magic, or only possible on Star Trek–like get directions right from where we are standing; watch a video on YouTube; or take a picture and share the moment instantly with friends. ” said Larry Page.

“We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google.”

And on Woodside, Moto’s new boss, who by the way is a Ironman triathlete, also helped built the Google empire across the Middle East, Africa, Eastern Europe  and increased revenue in the U.S. from $10.8 bn to $17.5 b, in three years as President of the Americas.

“I know he will be an outstanding leader of Motorola,” declared Page.

Read: Google To Buy Motorola For $12.5Bn As Apple Patents War Deepens

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