Abstract

On August 15, 2011, Google Inc. announced that it would acquire Motorola Mobility Holdings, Inc. (NYSE: MMI) for $12.5bn, which is a 63% premium of the August 12 share price (Google Inc., 2011). After the Chinese anti-trust agency finally gave its ok, as last major anti-trust agency, Google took over Motorola Mobility on May 22nd, 2012. Larry Page, the CEO and co-founder of Google, reached his goal but has to face several tough strategic decisions: the purchase of Motorola Mobility is the largest Google has ever done and he would be responsible to form a strategy that would lever Google's key strengths, such as advertising, software, and the Internet in general, with the strengths of Motorola, namely handsets but also patents. The risks are obvious: are their synergies and advantages except the patents? Has Google's management team experience in the hardware sector?

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