Google's entry into the handset market will place it's competitors Blackberry, Nokia and apple on red alert as it's anticipated Google will be entering the Android market.
Motorola is currently at the bottom of the UKs smartphone market (0.6% market share) so it may seem like a strange acquisition. However, Google CEO Larry Page has said "We believe their mobile business is on an upward trajectory and poised for explosive growth".
Google has also acquired a large portfolio of patents from Motorola.
Google's been busy and also bought Beat That Quote.com for £37.7 million. The comparison website will be integrated into Google's existing portfolio. This diversification strategy for Google will help them continue to expand through acquisition.
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