Motorola to join hands with Google
Expectations are flying high on one of the biggest mergers the mobile world has witnessed in quite some time of web giant Google agreeing to acquire Motorola Mobility Holdings for about $12.5 billion in cash, a deal that spells the end of independence for a respectable American company and reshaping the booming market for smartphones as computing shifts from the desktop to mobile devices. The deal gives Google which has spurred widespread adoption of its Android mobile operating system by licensing it freely to mobile phone makers its own in-house hardware operation, potentially enabling it to challenge rival Apple on better terms.
In order for the merger to be approved antitrust clearances and waiting period expiration’s are required by the U.S. Department of Justice, European Commission, Canada, China, Israel, Russia, Taiwan and Turkey.
So far, clearances have only been received from Turkey and Russia. The waiting period has expired in the United States and Canada, but Motorola has been informed that the reviewing agencies have not finished their investigations. The Chinese Ministry of Commerce announced in December that they have moved on to phase two of its investigation.
Motorola “expects the transaction to close in early 2012″ but notes that “factors outside the company’s control” could “delay or prevent completion of the transaction altogether.”
The biggest obstacle to completing the transaction could come from Europe where consumer groups are urging the European Union to block the merger. Few of them are of the view that allowing the Motorola Mobility deal would provide Google with unprecedented dominance in virtually all aspects of the mobile world from manufacturing to its operating systems, search and advertising etc making it an almost unstoppable force to be reckoned with.
No official word is out as yet as to how far the acquisition saga has reached so only time will tell whether such a lucrative deal does indeed materialize or are we expecting another twist in the tale from these two tech giants ?