Google Acquiring Motorola Mobility – Enabling Android to “Break New Ground”

| August 15, 2011 | Reply

Well, this came out of nowhere… Google and Motorola have sent out a combined press release today announcing that Google has entered into a definitive agreement under which Google will acquire Motorola Mobility for $40 per share in cash – which is about $12.5 billion. The transaction was unanimously approved by both companies’ board of directors.

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

Google claims its Android operating system will remain open to all manufacturers, despite the plans for the acquisition. They stated that this acquisition will “supercharge the Android ecosystem and enhance competition in mobile computing”.

“Our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community,” Android head honcho Andy Rubin said in a statement. “We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

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.”

“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem,” HTC CEO Peter Chou said in a statement. HTC, a fast-growing Taiwanese handset manufacturer, is a major rival to Motorola.

The first thought of many is probably “Wow, Google is going to make their own handsets?!”, which is not the case – at least not initially. Google stated in the press conference call that they have no plans to develop their own smartphone(s). Probably the biggest reason for the acquisition is the fact that Google will be getting the 17,000 patents that Motorola hold in their patent portfolio.

It should be interesting to see how this develops over time, for sure. Full press release below:

 

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Category: Mobile News, Tech News

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Co-owner and PR guy for GizmoNinja.com. I’m happily married and a father to a wonderful (most of the time) son. I work in the E9-1-1 software/data industry by day and am a tech loving geek in my spare time. I’m interested in all things tech, but am big into Android especially. I dabble in a little of everything – Android development, PC development, web development, etc – but am a master of none (not even close)… But I have fun doing it anyway! =P