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Financial Management assignment - Essay Example
Author : yreichert
Finance & Accounting
Pages 6 (1506 words)
made a surprise announce that it plans to buy Motorola Mobility for whooping $12.5 billion. Motorola has recently been entirely focusing in its Android business and while many viewed the deal as gateway for Google into smart phone segment, but more…
There are also high chances that some portions of business and obviously some workforce could be laid off because Google of cost cutting measures. Many analysts believe that if Google can sell Motorola’s home division, either in part or as whole, then the revenues realised from the deal could easily infuse necessary cash into Motorola’s handset division and give a chance to turn around (Pcmag.com, 2012). The merger and acquisition was strategic from the point of view of Google as post merger Motorola will still be operating independently and that the deal will strengthen the existing patent portfolio of Google. Google was also suffering losses from numerous lawsuits related to patent infringements between its vendors and the likes of companies including Oracle Corporation, Apple Inc. and Microsoft. Hence, the deal is expected defend its expanded portfolio and viability of its Android operating system.
Google Inc is mainly famous for its pioneering search technologies that it uses to connect billions of people around the world. The company was founded in the year 1998 by Larry Page and Sergey Brin, who holds PhD from Stanford. It is headquartered in Silicon Valley but its offices are spread across Europe, America and Asia. In the world of 21st century Google has earned the trophy of top web property in all major global markets. Google’s advertising segment are targeted to all types and size of businesses with quantifiable results. The company provides its users/customers enhancing web experience.
Motorola Mobility is a multinational publicly traded telecommunications equipments corporation that is headquartered in Chicago, Illinois, United States. The company has huge contributions revolutionising the mobile phone industry through innovation and holds a cumulative track record of pioneering mobile handset business for over 80 years. At the time of merger and acquisition, Motorola Mobility was the owner of 17,000 patents, out of which ...