Google bows before Europe for Motorola's hand in marriage
EC's approval needed in $12.5bn buy-up quest
Google has applied to the European Commission for regulatory approval for its acquisition of Motorola Mobility.
Back in August, the Chocolate Factory announced its plans to snap up the smartphone maker for $12.5bn, but it needs permission from a number of groups before the deal can go through.
The web giant got through one potential stumbling block when Motorola Mobility Holdings shareholders agreed to the merger at a special meeting on November 17, but it still needs the nod from the US Department of Justice and the European Commission.
The European Commission said today on its website that Google had applied for permission on November 25 and it gave a provisional deadline of January 10 for its answer.
Googorola has already put its application in for DoJ approval as well, but the department asked for more time to consider the deal on September 28.
Although the two firms would no doubt like to get on with the merger as soon as possible, Google implied it was totally laid-back about the DoJ hold-up when it was announced.
"While this means we won't be closing right away, we're confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes. We'll be working closely and cooperatively with them as they continue their review," Dennis Woodside, senior VP, said in a blog post. ®
Probably Google secretly hopes...
... that this deal would be denied!
This would be a good time for Google to also consider buying T-Mobile USA. That way Google could have the operating system, the manufacturing of the handset and the wireless system on which the handset is used.
If they do consider a T-Mobile purchase they should NOT disallow other manufacturers from using the Android on their handsets nor not carrying those other handsets on their network.
Google is not full stack
What you suggest may suit Apple which wants complete control but not 100 % market share. They are simply not interested ARPU of less than USD 100 which is way above what you can expect from mobile phones at the moment - last check I made was about USD 30 and still falling.
Google wants to be on everyone's device all the time so one network just isn't enough. As it is they are on pretty much everyone's network for the relatively cheap investment of 4 years Android development. T-Mobile would cost around USD 30 thousand million just to purchase and requires extensive investment to remain competitive, which is why it's being sold in the first place.