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Google-Motorola Merger Almost a Done Deal

Google gets a huge patent portfolio and will likely get deeper into the hardware business


One of the big issues for Google’s (NASDAQ:GOOG) $12.5 billion deal for Motorola Mobility (NYSE:MMI) was the regulatory approval process. Might the deal be blocked because of antitrust concerns?

The answer is no. This week Google got approval from the European Commission as well as the U.S. Department of Justice. But hey, with the surge of Apple (NASDAQ:AAPL), a Google-Motorola deal may result in better options for consumers, right?

The deal will also provide some legal protection. Keep in mind that Motorola has 17,000 patents, which cover important areas of mobile phones. Already Google’s Android has been the subject of legal challenges from companies like Oracle (NASDAQ:ORCL).

Yet the Google-Motorola deal is fraught with risk. These companies have distinct cultures and approaches. Besides, Motorola’s hardware business has much lower margins.

But Google is never lacking for ambition. For example, it has plans for Android@home, which will allow the use of tablets to stream music, turn off house lights and so on. In fact, Google is in the process of building a $120 million lab  to pursue these efforts.

Article printed from InvestorPlace Media,

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