Google is widely expected to use the acquisition to produce further smart-phones and tablets running its own Android software, including Google-branded rivals to Apple’s iPad.

Dennis Woodside, the previous president of Google’s Americas region appointed as new Motorola’s CEO. This acquisition is the largest acquisition of Google ever in its history, and pushes it deeper into the phone market.

Google’s CEO, Larry page said, “Many users coming online today may never use a desktop machine, and the impact of that transition will be profound”.

Besides producing smartphones and tablet computers, Motorola  also makes cable-TV boxes that could provide Google with a springboard for delivering more of its services, including advertising, to living rooms in the form of a revamped version of its Google TV service.