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Google Acquires Motorola Mobility For $12.5B
Google Acquires Motorola Mobility For $12.5B
August 15, 2011 | By Kris Graft

August 15, 2011 | By Kris Graft
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    6 comments
More: Smartphone/Tablet, Business/Marketing



Google on Monday announced it has entered a definitive agreement to acquire mobile device maker Motorola Mobility for $12.5 billion in cash.

The move, approved by the boards at both companies, will expand Google’s Android mobile business, creating a larger ecosystem for developers of games and apps. The search engine giant said that the acquisition will "enhance competition in mobile computing."

Not only will the acquisition benefit developers, but also Motorola Mobility stockholders – the $40 price per share that Google paid to acquire the company is a 63 percent premium over the closing price of Motorola Mobility shares on Friday.

Prior to the acquisition, Motorola Mobility was already an Android dedicated partner, with Motorola handsets and tablets using Android as an OS.

Motorola Mobility will remain an Android licensee, and Google will run it as a separate business. Google emphasized that the Android platform will remain open.

Google SVP of mobile Andy Rubin said in a statement, "We expect that this combination will enable us to break new ground for the Android ecosystem."

"However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community," he added. "We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices."

Motorola Mobility CEO Sanjay Jha added, "We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses."

The transaction is slated to close by the end of 2011 or early 2012, and is subject to closing conditions including the approval of Motorola Mobility stockholders, according to Google.

In July this year, Google announced that over 130 million Android devices had been activated, while more than 550,000 are activated every day.


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Comments


E Zachary Knight
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Also, Google will gain, what I suspect as being, a large patent portfolio for mobile devices. Something that will be a strong defensive weapon to use against those who would file patent lawsuits against them.



Odd how that flew under the radar.

Ben Sullivan
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Yeah, this is definitely a patent-defensive move - Google's never been interested in selling hardware which means Motorola will likely continue as it always has but perhaps with faster Android updates?



End result to consumer - almost nothing. These patent wars are absurd, expensive and only serve to punish the consumer through higher product prices.

Jonathan Daley
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This, coupled with the withholding of the Honeycomb source code, make me ever the more skeptical about Google's claims of Android being an "open platform".

Chris Melby
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Naaaa, Android isn't open at all. Reality clearly must speak other wise. :S :)



Google withheld Honeycomb's source, because it wasn't ready for other devices. They focused solely on the XOOM initially to get it on the market.



The source will be available with the release of Ice Cream Sandwich, which accounts for phones along with tablets.



Google buying Moto is purely in defense to Apple's current actions and also Microsoft's, both of which are being very anticompetitive. You must have noticed outside of Apple's law-suits, the amount of FUD that's been raised against Google in just the past year alone? With Android being a massive success and Google +, they've become a target for FUD.

Dimitri Sotiropoulos
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In order for Android to remain an "open platform", they would need to make sure that they are not in violation of already established patents. Google is on the go.

Evan Combs
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I don't really care too much about the more Google specific stuff about this, as I don't have any effect on patents or the like.



What I hope this means is that in the future Motorola phones will be the best Android phones with the least amount of crapware, and always up to date software. It will make decided on an Android phone a lot easy, hopefully.


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