Nokia up, Ericsson mixed as Google buys Motorola Mobility

Google’s 12.5 billion USD acquisition of Motorola’s handset business Motorola Mobility Holdings Inc. pushed Nokia’s (OMX: NOK1V) stock up over 10%. The market views Microsoft’s operating system to be more competitive as a result. There have also been rumours that Google might be interested in Nokia, although the fact that Nokia has chosen another operating system complicates matters on that end.

Google says it is committed to keeping its Android platform open. Motorola will be run as a separate business and it will continue as a licensee of Android. Samsung, LG, HTC and Sony Ericsson commented that the acquisition is positive as it shows Google is committed to protecting the platform in legal battles; Motorola Mobility’s patent portfolio was seen as one reason for the purchase. Some of the analysts’ think that Android using companies will at least seek to diversify into Microsoft’s platform in a de-risking move and that carriers might be more open to what Nokia has to offer as well.

Shares of Ericsson ((OMX: ERIC B, NASDAQ: ERIC)), which is the other party in Sony Ericsson joint venture are down a notch in Stockholm. Google is paying a 63% premium for Motorola Mobility, which until a January 2011 spin-off separation into two companies (Motorola Mobility and Motorola Solutions Inc.), was the Mobile Devices division of Motorola Inc.