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Google Acquiring Motorola Mobility for $12.5 Billion

By - Source: Google | B 36 comments

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.

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Top Comments
  • 11 Hide
    house70 , August 15, 2011 3:38 PM
    "by the end of next year or early in 2012"
    you mean, the end of this year... 2011, remember?

Other Comments
  • 11 Hide
    house70 , August 15, 2011 3:38 PM
    "by the end of next year or early in 2012"
    you mean, the end of this year... 2011, remember?

  • 4 Hide
    mister g , August 15, 2011 3:40 PM
    The Android platform might be open, but I think Google wants a taste of how Apple does business with its iPhones. I'm wondering how all the Motorola phone owners feel about calling Google for tech support.
  • 2 Hide
    sinfulpotato , August 15, 2011 3:41 PM
    Well, I doubt it would be wise to close Android. If you piss of Samsung you might have bigger issues then losing the Galaxy S line.
  • -8 Hide
    LongLiveRock1974 , August 15, 2011 3:48 PM
    house70"by the end of next year or early in 2012"you mean, the end of this year... 2011, remember?


    Even a 3rd grader could have figured out what she meant.
  • 6 Hide
    andy5174 , August 15, 2011 3:55 PM
    house70"by the end of next year or early in 2012"you mean, the end of this year... 2011, remember?

    I think it's a typo. She must meant "2013" instead.
  • 3 Hide
    zorky9 , August 15, 2011 3:55 PM
    mister gThe Android platform might be open, but I think Google wants a taste of how Apple does business with its iPhones. I'm wondering how all the Motorola phone owners feel about calling Google for tech support.

    This is more for their protection from all the patent infringement stuff Apple and friends have sent their way. Motorola owns thousands of patents, and this move by Google makes a whole lot of sense. They're not going to PO their partners by giving Motorola Mobility some preference.
  • 0 Hide
    stratplaya , August 15, 2011 3:56 PM
    That's what we need, a bigger Google.
  • 1 Hide
    stingstang , August 15, 2011 4:00 PM
    longliverock1974Even a 3rd grader could have figured out what she meant.

    Oooooh. Pulling out the "Even a Xth grader coul" burns, huh? Cool story bro.
    (Notice the way I'm pulling out the "Cool story bro" burn to be funny.)
  • 2 Hide
    zak_the_great , August 15, 2011 4:06 PM
    Not sure how this helps as Motorolla was already being sued by Apple dispite of their patents they have.
  • 2 Hide
    jecastej , August 15, 2011 4:10 PM
    The move makes a lot of sense, absolutely. But.
    Will Google play fair enough in the months and years to come with their other hardware partners, or will they be too tempted to go to far using their advantage?
    How successful Google will be with their hardware business at all?
    How will other hardware competitors read Google's new position.
  • 2 Hide
    hunter315 , August 15, 2011 4:11 PM
    This is a nice way to shield the hardware manufacturers from suits about the Android OS, they had always been going after motorola and HTC so they could get money and avoid google, now they have to take on google, should help keep Android from costing license fees now that the google legal team is in on it too.
  • 1 Hide
    Archean , August 15, 2011 4:13 PM
    I think biggest motivator for Big G to get Motorola is 'patents'. Android is thinly covered when it comes to patents, that is why it is facing patent issue left and right, resulting in likes of HTC and apparently Samsung paying hefty amount to patent holders for each unit sold.
  • 0 Hide
    captaincharisma , August 15, 2011 4:22 PM
    does this mean *gulp* the next nexus will have that horrid moto blur?
  • 4 Hide
    Archean , August 15, 2011 4:25 PM
    Don't think so, but it does mean, that likes of Samsung / HTC / LG will probably become more aggressive in diversifying their offerings by including other platforms as well.
  • 1 Hide
    MxM , August 15, 2011 4:25 PM
    zorky9This is more for their protection from all the patent infringement stuff Apple and friends have sent their way. Motorola owns thousands of patents, and this move by Google makes a whole lot of sense. They're not going to PO their partners by giving Motorola Mobility some preference.

    It would be much, much cheaper to simply license those patent. And entering hardware business may bring more patent litigation.
  • -1 Hide
    Anonymous , August 15, 2011 4:27 PM
    Great for consumers.

    If you look at android manufactures, they are in multiple boats already.

    Samsung supplies 40% of the parts for Apple iPhone while selling Androids.
    HTC sells Android and Windows phones.

    Now, it comes down to which is best and provide choices. HTC is already doing enough to distinguish itself by buying 3 companies in 1 month - 300 million on s3 graphics, 15 million on cloud company and another 600m on audio.

    Eventually, Android will be so strong and each manufacturer will provide unique features.

    Microsoft will be sidelined in post-pc era because they lost credibility with consumers.
  • 0 Hide
    Jerky_san , August 15, 2011 4:38 PM
    mister gThe Android platform might be open, but I think Google wants a taste of how Apple does business with its iPhones. I'm wondering how all the Motorola phone owners feel about calling Google for tech support.


    I shall feel great cause I know that I will probably receive updates nearly constantly and hopefully Google will kill moto's motoblur and then I will have a pure android device. Maybe they will even strip out the locked boot loader ^_^
  • 0 Hide
    jonathan1683 , August 15, 2011 4:48 PM
    exactly time to give apple a taste of their own medicine, let the patent trolling begin!
  • 1 Hide
    Blessedman , August 15, 2011 4:49 PM
    Don't count on older devices being revamped
  • 2 Hide
    verbalizer , August 15, 2011 5:20 PM
    I'm starting not to trust much about Google except for there search tools..
    Getting too big for my taste, hands in too many cookie jars..
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