), the creator of the world's most widely-used smartphone operating
system, will now compete more directly with rival
) Mobility cell phone division at a cost of $12.5 billion.
Google created the open-source Android operating system, which is
used around the globe on a variety of different hardware. It
dominates the market, having toppled Research in Motion's (
) BlackBerry platform. Apple, on the other hand, has a slightly
smaller share but possesses the advantage of an integrated platform
that ties together its iOS with the iPhone and iPad lines of
The hardware-software integration is characteristic of Apple
products, known for their unity of form and design and the price
premium they command on the market. Google's ecosystem, by
contrast, has spread across a wide variety of models and has taken
footholds in both the high and low segments of the mobile market.
By purchasing Motorola Mobility, Google shows that it wants to
compete in the hardware sector as well, marking the first time
Google has really seized control of the device production process.
The news should also boost the NASDAQ and the tech sector as a
whole, as its one of the largest acquisitions in recent memory.
Google paid $40 per share for the firm, a 63 percent premium. At 10
a.m. EST, shares were up 56.72 percent to $38.35.