Google Acquiring Motorola Mobility for $12.5 Billion
Who says Mondays aren't exciting?
Google has said that it will acquire Motorola Mobility. The company announced the decision via its official Google blog and a press release posted early this morning. Having already garnered the approval of both boards, the deal will see Google acquire the mobile arm of Motorola for $40 per share, or a total of about $12.5 billion, a premium of 63 percent to the closing price of Motorola Mobility shares on Friday.
"In 2008, Motorola bet big on Android as the sole operating system across all of its smartphone devices," Google CEO Larry Page said. "It was a smart bet and we’re thrilled at the success they’ve achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth."
Andy Rubin, Senior Vice President of Mobile at Google and commonly referred to as 'the father of Android,' said that while Google expects the acquisition to enable Google to 'break new ground for the Android,' the company's commitment to Android as an open platform has not changed.
"We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices," Rubin said.
Page echoed Rubin's reassurances in a blog post published early this morning:
"This acquisition will not change our commitment to run Android as an open platform," he insisted. "Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences."
The deal may already have the approval of both the Google and Motorola Mobility boards but it will still be subject to the usual closing conditions, including the receipt of regulatory approvals in the US, the EU and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The two expect everything to be signed and seal by the end of next year or early in 2012.