Google to buy Motorola Mobility for $12.5 billion

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Google to buy Motorola Mobility for $12.5 billion | Reuters

(Reuters) - Google Inc said it will buy Motorola Mobility Holdings Inc for about $12.5 billion in cash in a move to bolster the adoption of its Android mobile phone software.

Google said it would pay $40 per share, a 63 percent premium to Motorola Mobility's Friday close on the New York Stock Exchange. Motorola Mobility shares jumped 59 percent in premarket trade on Monday.

Google, maker of the Android mobile phone operating system software, has been forging ahead in the smartphone market but has been hampered by a lack of intellectual property in wireless telephony.

Earlier this month, fresh from losing a bid to buy thousands of patents from bankrupt Nortel, Google Chief Legal Officer David Drummond blasted Microsoft, Apple, Oracle and "other companies," accusing them of colluding to hamper the increasingly popular Android software by buying up patents.

Google said the deal will close by the end of 2011 or early in 2012 and that it will run Motorola Mobility as a separate business.
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More links:

Google acquiring Motorola Mobility -- Engadget

Official Google Blog: Supercharging Android: Google to Acquire Motorola Mobility
 
Frankly, I did not see this coming. This has potential to have huge implications to Android market and entire smartphone market even if Google decides to keep this as a separate entity which they probably will for now.

I dont know how to react to this at the moment. Its a risky strategy which can give rich rewards.
 
challapradyumna said:
competing with microsoft huh they bought skype we will buy motorola ...........
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Both of these cases cannot be compared, Moto has tons of patents which will help Google to fight the war in a better way...
 
Google to Acquire Motorola Mobility

Source : Google to Acquire Motorola Mobility | techPowerUp

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.â€

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.â€

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.â€

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.
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I found this in comments in Reuters post : ( not my view )

I’ll bet Steve Balmer just …… his pants!!
 
This is not like Microsoft and Nokia. They only have alliance with each other, while in this case Google has outright purchased Motorola. This can work in favors for Google and Android, why?

1) Android will have an in-house hardware manufacturer in comparison to Apple which has its own in-house manufacturer.
2) Loads and Loads of Patents that can be used to defend Google. Also lets not forgot about Motorola as one of the old school mobile manufacturers

I am wondering what will happen to HTC. Will this work in favor of HTC against Microsoft? With this takeover and already existing lawsuit between Motorola and Microsoft plus Google takeover and even more powerful legal team. They can fight and maybe Google can save its alliance.

Also wondering if this takeover creates a new ecosystem considering Android based smartphones, Tablets and Netbooks. Also will Google start charging for Android to other manufacturers?????
 
Re: Google to Acquire Motorola Mobility

I know its too late , but good to know that Google finally got into the patent war . Motorola purchase will give Google 17.5k issued patents and mostly are related to Wireless standards and Motorola has also filed for 7k patents . Its simply amazing to know that Google aquired 25000 patents , wished if it had won the Nortel deal too .
 
It will give rewards...It will help them to overcome Microsoft patent...Besides we as a consumer will get better Mobile with proper hardware for android O S.....
 
What about other Android hardware vendors like Samsung / HTC ? I know they are pleased right now due to the patent war, but will they be in the future when Motorola starts getting early access to firmware updates and features?
 
OMFG! :O :O Motorola?! :O It's one of the old phone manufacturers around!

As I have always said, Google is taking over the world. This is a big step ahead in that path.
 
Now that's hugeeeee. Didn't see this coming. So we would see all Google experience phones from Motorola now, wouldn't we? Nexus Prime also Motorola? :S
 
abhifusion said:
Excellent move by Google to protect Android Ecosystem :) ... Any guesses for next version of android ?? "Apple-Mango Custard" maybe :p
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the nomenclature follows alphabetic order

Android

Android 1.0 ??

Cupcake

Donut

Eclairs

Froyo

Gingerbread

Honeycomb

Ice-crem Sandwitch
 
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