Google Buys Motorola Mobility for $12.5bn

The gloves are off once more in the very personal fight between Microsoft and Google.

Hot on the heels of the rumours that Microsoft may buy Nokia to try and win some share of the smartphone market, Google have done something rather decisive. They have bought Motorola Mobility for a walloping $12.5bn representing a premium of over 60% on current share value.

Not only does it take a potential user of Windows Mobile off the shelf but Motorola owns some of the key patents in this space so together this could be a very powerful combination for Google's Android operating system.

As I have been banging on about lately, Microsoft are getting squeezed by the two companies that are fiscally strong enough to take them on - Apple and Google. Right now Microsoft is looking very leaden footed on the back of a successful year.

When will the complacency wear off and Microsoft start really fighting back?


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