Government Okays Google / Motorola Mobility Merger

Google is poised to acquire Motorola Mobility any day now for a proposed $12.5 billion. The U.S. Department of Justice (DOJ) just gave the Android operating system creator the go-ahead to merge with the mobile phone giant.

The word was first heralded via Twitter by Reuters correspondent Poornima Gupta. Gupta’s tweet states, “All clear! Google-Motorola deal approved by Dept of Justice. $GOOG.” Later, Reuters published an official post on its website stating that the DOJ said it “[W]ould not hesitate to take enforcement action to ensure that essential patents  – patents needed to ensure that devices sold by different companies are interoperable — were licensed fairly.”

The DOJ’s Antitrust Division official statement says, “The division concluded that the specific transactions at issue are not likely to significantly change existing market dynamics.”

Google’s ownership of Motorola Mobility will allow them to inherit a portfolio of approximately 17,000 patents, and 6,800 applications. Now that Google has the second most popular operating system for tablet devices, maybe they will finally be able to create a device that is an equal competitor for the iPad.

The Xoom is Motorola’s most popular tablet device. However, it still lags far behind Apple’s overwhelming share of the tablet market. The company recently updated its Wi-Fi model with Google’s Android 4.0.3, also known as Ice Cream Sandwich, but failed to make that same update for their 3G customers. That kind of slip may not be a problem anymore if Google is in charge.

The real question is what Google has up its sleeve for a brand new device. Smart phones are already hugely popular with Android operating system, so it is likely the company will focus more on tablets. They are known for being forward thinking and innovative. There is a very good chance that Google will be able to think tank their way to a tablet that will actually close the market gap between the iPad and all others.

[via ZDNet]

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About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik