Google closes Motorola Mobility acquisition, Jha out

Google (Nasdaq: GOOG) Chief Executive Officer Larry Page announced today in a blog post that Google has closed its $12.5 billion acquisition of Motorola Mobility (NYSE: MMI). 

An announcement had been expected to come after China's regulators gave the deal the final government blessing it needed to reach the finish line.

Page said Motorola chief Sanjay Jha is stepping down, and that Google's Dennis Woodside will be replacing him, another move that had been widely anticipated.

Overall, the Google-Motorola deal rode an easy, fast track to regulatory approvals worldwide, with no conditions being imposed on the acquisition. However, many observers have wondered how effectively the Internet giant can integrate and run a hardware vendor focused on lower-margin business opportunities.

Moreover, some also have questioned Google's ability to keep a neutral stance on licensing of its Android operating system while also owning a major Android device maker.

Motorola Mobility, for its part, recently reported an $86 million net loss for the first quarter, slightly above its loss for the same quarter in 2011. It also saw its total handset shipments slip year-over-year, from 9.3 million to 8.9 million, though it did see smartphone shipments jump from 4.1 million in Q1 2011 to 5.1 million in Q1 2012.

Meanwhile, it continued to experience declining revenue in its set-top box business, a unit that at times has been rumored to be headed for the auction block under Google's watch.

For more:
- read Page's post

Related articles:
China's regulators approved the Google-Motorola deal this weekend
Motorola Mobility reported first quarter numbers a few weeks ago
Motorola's set-top box revenue declined in the first quarter

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