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  • Google Buys Motorola Mobility For A Whooping $12.5 Billion, Android WIll Still Remain Open Source

    Big news coming in from Mountain View, California folks. The search giant Google has just announced that it will be acquiring Motorola Mobility for a massive $12.5, at $40 per share which is 63% more than Motorola’s closing share price in the stock market last Friday.

    The whole acquisition is gonna take place by the end of this year or in the starting months of 2012. Motorola being on the top three Android OEM partners this could have proved very bad news for the other partners but Google has ensured us all that Android will still stay as an open platform and they will run Motorola as a separate business.

    Google claims the that the main motivation behind this acquisition is to get a hold of Motorola’s massive collection of patent which goes back more than 80 years. Lary Page, CEO of Google had the following to say:

    acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable [Google] to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

    So what will this deal lead to? A Motorola Nexus device? The end of NinjaBlue/Blue/MotoBlur or will Motorola do the same as it has been doing for all these years? Only time will tell. Let us know in the comments what you think. Press Release is below:

    Google to Acquire Motorola Mobility

     

    Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

    MOUNTAIN VIEW, CA and LIBERTYVILLE, IL – AUGUST 15, 2011 – Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

    The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

    Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

    Sanjay Jha, CEO of Motorola Mobility, said, “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. 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.”

    Andy Rubin, Senior Vice President of Mobile at Google, said, “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. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

    The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.

    Webcast Information

    Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live athttp://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.

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