by George Heymann

Google to Acquire Motorola Mobility for 12.5 billion

by George Heymann

Google and Motorola this morning announced that they have entered into an agreement in which Google will acquire Motorola for 12.5 billion subject to regulatory approval.

Google spin on the acquisition is that it was a natural fit for the two companies and that Google remains committed to Android as an open platform and to its many hardware partners .

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.”

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.”

Motorola’s’ take is that the merger was good for the stockholders which it definitely was, as Google reportedly paid a 63% premium for the stock from Friday closing price.

“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.” According to Sanjay Jha, CEO of Motorola Mobility.

Despite all the reassurances from Google and Motorola, that Motorola will be handled as a separate company and just another Android Licensee, I have to wonder how this mornings news is affecting Googles other hardware partners.

I understand that the patent acquisitions that come with the purchase of Motorola will bolster Googles patent portfolio and strengthen Androids ability to protect itself in possible future patent litigation. That said I believe that it will give Androids other hardware partners a reason to pause and re-evaluate their hardware strategy. I wouldn’t be surprised to see companies like HTC further diversify its portfolio to support additional platforms like WebOS in addition to Windows 7 and Android.

The transaction is expected to close by the end of 2011 or early 2012.

Source: Google Blog, Google Investor relations


Filed under: Android, Breaking News, General technology, Google, Hardware, Media, Software, , , , , , , , , , , , , ,

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