China Delivers Good News to Google
Investing Insights: Is Google A Buy?
Among the stipulations placed on the deal by China is a guarantee to maintain Android as a free and open source technology for the next five years. The move points to Android’s importance in the Chinese smartphone marketplace. The OS is the most popular smartphone platform for the country and its free licensing allows companies to offer smartphones at a cheaper price.
According to Motorola Mobility’s 8-K, the deal is set to close within the next two days. After that, new management will participate in a tour of Motorola’s entire operation and make decisions about the future of the company, which will reportedly include layoffs.
While no comments about restructuring have yet been made, when Google acquired DoubleClick it cut 40 percent of the company’s staff of 1,600. Motorola Mobility, which had a staff of 19,000 at the time Google announced plans for acquisition, has been undergoing its own independent restructuring, cutting 800 jobs since October of 2011.
Neither Google nor Motorola Mobility have confirmed who will be at the helm of Motorola once the acquisition is complete.
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