GOOGLE has completed its largest deal to date with a £7.7bn deal for mobile phone handset manufacturer Motorola Mobility.
The search giant had a partnership deal with Motorola Mobility, but has now completed an acquisition of one of the largest makers of phones running the Android operating system. The deal is to go through late this year or early next year.
The booming mobile phone market has largely become a battle between Google’s Android operating system and the iOS system found in Apple’s iPhone and iPad ranges.
According to research firm Canalys, Android is the market leader, with 48% share in the second quarter of the year.
Google CEO Larry Page said the deal for Motorola Mobility would “supercharge Android”, and that the company would continue to be run as a separate business.
In a piece on Google’s blog, he said: “Motorola’s total commitment to Android in mobile devices is one of many reasons that there is a natural fit between our two companies.
“Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere.”
Motorola Mobility is the result of a split in Motorola eight months ago, which saw Mobility take on the handset manufacture, while Solutions supplies wireless services. Crucially, Motorola Mobility also holds an increasing number of mobile patents, which currently stands at around 17,000.
As the smartphone and tablet market has become more heated, several lawsuits have been fired from one company to another involving patents.
Samsung was hit with a European sales ban after Apple claimed it “slavishly” copied the iPad for its Galaxy Tab 10.1, while Microsoft accused Motorola itself late last year of infringing on patents with its Droid 2 phone. Earlier this month, Google blogged that its rivals were waging a “hostile, organised campaign” against Android using “bogus patents”. It also attempted to secure patents owned by Novell and Nortel relating to smartphones, but were out-bid at auction.
Analysts also speculated the deal would have repercussions for other firms which use the Android system.
Samsung, HT, Sony Ericsson and LG all released terse statements following the deal, welcoming Google’s “commitment to defending Android and its partners”.
However, Gartner analyst Michael Gartenberg said Motorola now appeared to be the “favoured player” for Android.
He said: “If I’m a third-party vendor, I have some real concerns here.”