3/10/2012

hows IT giants in Merger & acquisition?

If someone ask me what is the biggest merger & acquisition (M&A) throughout last year. There are no needs to dispute the case of Google's Motorola Mobility takeover will be the winner. Under Google press releases, the company involved a deal, Google's will employ USD40 dollars per share acquisition totalling about $ 12.5 billion, premium 63% to the closing price of Motorola Mobility shares.

Google of Android is an open of platform, currently totalling 150 million worldwide carrying the devices was the use of the system, about 550,000 units a day was started in 123 countries around the world and there are 39,231 carriers and hardware manufacturers cooperate. Imagine wanted to Android today of powerful, its base upon high speed growth market field against another smart phone competitors. Moreover, Google has been is committed to itself proud product which capability to shift future mobile and tablet computers development named cloud service, let users with home regardless of in phone or desktop, enjoy  synchronism  rely on Google. Whereas arise user number become huge, order advertising income also into is proportional to the growth. If lack of chips in conference table will losses other Partner support is does not worth .Google is time to do something like spent money to acquire some patents , will not focus on Vertical integration, but to Google's main purpose is to make Android brightness view.

To pursue a health environment in grow. HTC with Apple of phone patent war has stir up Google of neural, if Apple keep in eye in protect own phone system to playing patent war, Google and all Android phone manufacturer will affected, like some phone manufacturer fear provoked lawsuit and prepared go cast Microsoft window mobile system 7. For solve this patent war of dilemma, Google need supercharge phone of fundamental-multiple wireless and the phone of technology patent start.

Someone will think Google is making a high-stakes gamble in the global smartphone wars. But, as my point of view, the premier proposes of this M&A motive not only cross-selling to work with stable development partners, but also secure the fundamental financial with increase shareholder wealth to reach profit maximisation goal. When Google acquired Motorola Mobility with full commitment to the Android operating system means there is a natural fit, look like a stronger and more viable Google emerged into. Hence, some analysts say maybe the right moment to take on smart phone giants such as Apple and Samsung. Shareholders would think that Motorola Mobility took on the role of the self-sacrificing. But this is unavoidable abandon some innocence , as it turns out, shareholders of Motorola made a cool 63% premium over its closing price on announcement date. The shares have risen more than 7.7% to $600.25 after its takeover on the NASDAQ on Friday, before closing at $557.23. Nevertheless, the shareholders of Google Inc. also received a steady development as hopes rise wealth that this innovative technology inject will help it break more records. 

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