Larry Page, Google’s chief executive, announced today on their official blog that they’ve closed the deal on their purchase of Motorola Mobility. Explaining Google’s decision to enter the mobile business, Page wrote “many users coming online today may never use a desktop machine, and the impact of that transition will be profound–as will the ability to just tap and pay with your phone. That’s why it’s a great time to be in the mobile business”.
He also went on to announce that current CEO, Sanjay Jha, will be stepping down from his position and thanked him for his efforts for “building the company and placing that big bet on Android”. He will be succeeded by “long time Googler Dennis Woodside” who according to Page helped increase their revenue in the U.S. from $10.8 billion to $17.5 billion in under three years as President of the Americas region.
The deal helps Google, push the web company to better compete with Apple’s iPhone and gain more clout for its Android software as it expands in the hardware business. It also gives Google, the worlds’ biggest maker of smartphone software, 17,000 patents to protect Android devices in legal disputes against competitors.
To gain approval in China, Google said the company promised to keep its Android mobile phone software open and free for at least five years and agreed to charge fair and reasonable fees for technology licenses. According to the news agency Reuters “the company will retain some Motorola executives, including Iqbal Arshad as head of product development, and Dan Moloney as head of the set-top box business”.