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Regulator takes a closer look at Google deal
Source: Agencies |
September 30, 2011, Friday
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THE United States Justice Department is taking a closer look at Google's proposed US$12.5 billion acquisition of cellphone maker Motorola Mobility, raising a hurdle that must be cleared before the deal can be completed.
The review had been widely expected since Google announced plans to buy Motorola Mobility last month.
Most of Google's big acquisitions have been scrutinized by regulators in the past few years because of the power the company has gained as the Internet's search and advertising leader.
Google also makes Android, a leading software system for mobile phones. The competitive advantages Android has given Google in the mobile market may be one of the focal points of the Justice Department's inquiry.
Despite the increased scrutiny, Google has won government approval for all its acquisitions so far. Antitrust experts also expect regulators to sign off on the Motorola Mobility deal because there will still be plenty of other mobile phone manufacturers in the market.
If it is approved, the Motorola purchase will be by far the largest acquisition in Google's 13-year history.
Dennis Woodside, a Google senior vice president overseeing the acquisition, said: "We are confident the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes."
A rejection of the deal would be expensive for Google, which has promised to pay Motorola Mobility US$2.5 billion if it is not completed.
Google is principally interested in Motorola Mobility's 17,000-strong patent portfolio.
It has taken Google eight months to nearly a year to gain the necessary approvals for some major deals.
The review had been widely expected since Google announced plans to buy Motorola Mobility last month.
Most of Google's big acquisitions have been scrutinized by regulators in the past few years because of the power the company has gained as the Internet's search and advertising leader.
Google also makes Android, a leading software system for mobile phones. The competitive advantages Android has given Google in the mobile market may be one of the focal points of the Justice Department's inquiry.
Despite the increased scrutiny, Google has won government approval for all its acquisitions so far. Antitrust experts also expect regulators to sign off on the Motorola Mobility deal because there will still be plenty of other mobile phone manufacturers in the market.
If it is approved, the Motorola purchase will be by far the largest acquisition in Google's 13-year history.
Dennis Woodside, a Google senior vice president overseeing the acquisition, said: "We are confident the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes."
A rejection of the deal would be expensive for Google, which has promised to pay Motorola Mobility US$2.5 billion if it is not completed.
Google is principally interested in Motorola Mobility's 17,000-strong patent portfolio.
It has taken Google eight months to nearly a year to gain the necessary approvals for some major deals.
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