Google delves into hardware, buys Motorola Mobility for $12.5 billion

By on May 22, 2012, 2:30 PM

Google has announced its acquisition of Motorola's mobile arm for 12.5 billion dollars, a sum which marks the largest Google acquisition thus far. News of the deal's closure came from a Google blog post Tuesday morning, a post which follows a long and complex courtship that began in August of last year.

This purchase inserts Google firmly into the mobile hardware arena where it is expected to use Motorola Mobility's facilities and expertise to produce its own portable devices. Such a move puts Google in direct competition with the very companies who offer Android on their handsets and tablets. In the past, Google has stated that it would not use its position with Motorola's mobile unit to undermine its partners.

The acquisition will also arm Google with a war chest of over 24,500 patents, initially thought by speculators to be the most important features of the deal. Many of these patents are expected to help Google and its partners defend Android from some future lawsuits.

There has been no word yet on possible restructuring, layoffs or what a Google-inspired Motorola Mobility will otherwise look like. However, the blog post states that Motorola Mobility's existing CEO, Sanjay Jha, will step down. In his stead, Google's regional president of the Americas, Dennis Woodside, will head the company. Meanwhile, Jha is expected to assist during the transition and Google thanked him for his efforts.

Google casually mentions that Woodside is an Ironman triathlete, but comforts investors by also praising Woodside for his sharp ability to assemble teams which produce results. Google goes on to credit Woodside for a 6.7 billion dollar revenue increase during his reign as regional president during the past three years.

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