Google Acquires Motorola Mobility for $12.5B

Acquisition expands YouTube parent from software to hardware manufacturer, including expansion into consumer electronics and set-top boxes Google Inc. Aug. 15 said it would acquire Motorola Mobility Holdings Inc. for $12.5 billion, establishing the search engine behemoth as a major player in both the hardware and software markets. Chicago-based Motorola is one of the largest manufacturers of mobile phones, including smartphones incorporating Google's open-platform Android wireless software. "The deal will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers," Google said in a statement. The largely all-cash deal helps Google control the rights to more than 24,000 patents, which should help the company deal with increased litigation regarding license fees involving the Android platform. Specifically, Google recently has been sued by Oracle, Microsoft and Apple, among others, over intellectual property and third-party patents currently in use in the burgeoning smartphone market.

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