Google Buys Motorola Mobility for $12.5B, Announced “Android Will Stay Open”
Posted on 12:01 AM by Y NEWS
Google just announced that it is going to acquire Motorola
Mobility. The search and online advertising company is buying the company
for approximately $12.5 billion USD (or $40 per share), in cash. The price
represents a premium of 63
percent to the closing price
of Motorola Mobility shares last Friday. Google had about $39 billion cash in
account at last count.
Here’s the other important part of the PR (the
why, and what happens to Android now):
The acquisition of Motorola Mobility, a dedicated
Android partner, will enable Google to supercharge the Android ecosystem and
will boost competition in mobile computing. Motorola Mobility will remain a
licensee of Android and Android will remain open source. Google will run
Motorola Mobility as a separate business.In a blog
post, Google co-founder and CEO Larry
Page published that Google
has acquired Motorola not only because of its strength in Android smart-phones and devices, but also for being a “market leader in the home devices and video
solutions business.”
It’s also a move to build up the company’s patent
portfolio, he adds, as it will “enable us to better protect Android from
anti-competitive threats from Microsoft, Apple and other companies”.
According to Motorola Mobility’s website, the company holds
approximately 14,600 granted patents and 6,700 pending patent applications,
worldwide, as of January 2011. Update: You can find updated numbers on this –
based on the conference call – in our follow-up
post.
Motorola Mobility is what used to be the Mobile
Devices division of Motorola until January 2011.
A few years ago, Motorola bet its future in the
mobile devices market by going full Android, launching the “Droid” – initially
on the Verizon network – on November 6, 2009. The “Droid X” and “Droid 2″
followed in 2010.
Big question now is: how will HTC, LG, Samsung,
Sony Ericsson, Acer, Lenovo and other Android device makers respond to this
news? Update: Google points out some of them already have.
We’re jumping on the conference call soon, and doing thorough analysis later. For now, whoa.
Full press release:
Google to Acquire Motorola Mobility
Combinations will Supercharge Android, Enhance
Competition, and Offer Wonderful User Experiences
MOUNTAIN VIEW, Calif. & LIBERTYVILLE,
Ill.–(BUSINESS WIRE)–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.
“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
Motorola’s devices to family of Google.
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.
Subscribe to:
Post Comments (Atom)
No Response to "Google Buys Motorola Mobility for $12.5B, Announced “Android Will Stay Open”"
Leave A Reply