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On August 15, 2012, Google announced an agreement to acquire Motorola Mobility, based in Libertyville, Illinois,...

On August 15, 2012, Google announced an agreement to acquire Motorola Mobility, based in Libertyville, Illinois, for $40 per share. Both boards of directors approved the deal (Google).

Describe why this was or was not a good economic decision for Google. Please incorporate what you have learned in Chapters 5 and 6 into your post. Defend your position.

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On August 15, 2012 Google announced an agreement to acquire Motorola Mobility, based in Libertyville, Illinois, for $40 per share. Both boards of directors approved the deal.

According to me it was a bad economic decision on part of Google because:

  • Google is a software company and it does not seem to be a judicious decision by Google to enter into hardware market.
  • Mobile Phone Market is highly competitive. Many big brands are present in the market. Some of the popular brands are Apple, Samsung, HTC. Moreover, the low priced Chinese Mobile Phones are a great challenge. Google may have to struggle a lot to establish itself in this market. So, I think it was not a favorable decision by Google to acquire Motorola.
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