In late March, Motorola Mobility (NYSE: MMI) announced plans to acquire Swedish IPTV software provider Dreampark. With this acquisition Motorola apparently intends to hone its media convergence skills, which could be applied across several platforms, including its set-top boxes, smartphones, and tablet PCs.

Although the companies did not disclose the terms of the deal, Motorola has announced that the Dreampark software would be combined with its Medio service management suite after the transaction closes in the latter half of this year.

It's absolutely fair to assume that the deal is unlikely to have a remarkable impact on Motorola's stock in the short run. Nevertheless, this deal would likely strengthen Motorola's hold on system integrators and content providers segment. Bear in mind, Motorola is struggling to improve its position in the market.

Struggle for power
It has not been a bed of roses for Motorola Mobility. After the outsized success of its RAZR phone mid-decade, the company was unable to carry momentum in future designs, and it watched revenue fall off a cliff. Apple's (Nasdaq: AAPL) iPhones and iPads have particularly weighed on MMI's game. Without software to directly match Apple, the company embarked on a plan to adopt Google's (Nasdaq: GOOG) Android as the basis for a turnaround plan.

As part of the plan, Motorola Mobility got separated from Motorola Solutions (NYSE: MSI) this year. The separation should help Motorola Mobility focus resources on the development of smartphones and tablets. Nevertheless, the task is not going to be easy. Whether it's the iPhone or a bevy of other competitors also running Google's Android, Motorola has a tough road ahead. Still, the thirst for new software and homegrown tweaks to Android hints at Motorola's zeal to work hard on delivering more innovative products.

Can small drops satisfy the thirst?
Swedish IPTV player Dreampark isn't Motorola's only recent acquisition. After cash acquisitions declined from $519 million in 2007 all the way down to $21 million in 2009, the company has once again found an acquisitive bent. In 2010, cash acquisitions managed to climb back to $142 million, implying that Motorola has intensified its hunt for suitable software. This year, to name a few, it has invested in patented licensed digital rights lock provider Catch Media and mobile enterprise security developer Three Laws Mobility. Looks like Motorola is planning to build a bridge on the troubled waters through small and qualitative acquisitions.

Acquisitions are a great way for a company like Motorola -- which is finding itself increasingly in a battle to offer differentiating software -- to fill holes and better compete in its core markets. Now, it depends on Motorola effectively managing and integrating these products. With so much growth in digital entertainment and mobile devices, there's plenty of opportunity ahead, but only if Motorola can keep executing.

Anupama Pattanaik doesn't hold shares of any of the companies mentioned in the article. Google is a Motley Fool Inside Value pick. Google is a Motley Fool Rule Breakers recommendation. Apple is a Motley Fool Stock Advisor selection. Motley Fool Options has recommended a bull call spread position on Apple. The Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.