The AT&T and T-Mobile merger has been getting quite a bit of attention lately, with just about everyone thinking that this is a bad move. Meanwhile another major acquisition, Google and Motorola Mobility, has been rather quiet and keeping to the background, at least until now where the DOJ (Department of Justice) has decided to take a closer look at the $12.5 billion deal.
Google has in the past been closely scrutinized, which is expected considering the power and reach that the company has managed to amass over the years, and it looks like this deal will be no different. This request for more information by the DOJ will basically result in the deal not being able to close for an additional several months, which could pose a problem for both companies. What comes to mind is Motorola Mobility’s lawsuit with Apple, where Apple has requested for a stay until the merger between Google and Motorola Mobility has been completed, and if the merger has been dragged out it could end up being to Apple’s advantage.
It has been speculated that perhaps one of the reasons why the DOJ is taking a closer look at this deal is due to Android being the leading smartphone platform at the moment. Controlling a little over 40% of the smartphone platform market share, and despite Google claiming Android to be open-source, this acquisition could limit competition, especially in the future should Google decide to close its Android doors to other manufacturers.RELATED
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- Follow: acquisition, Google, merger, Motorola,
- Seen at: finance.yahoo