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Google has announced that it will acquire Motorola Mobility for 12.5 billion dollars. While some people have rumored that this aquisition was more for the Patents than the phone and tablet business Google has stated that it plans to run Motorola Mobility as a seperate business and keep the Android operating system open source. Google, who has never been afraid to spend money offered $40.00 per share, or a 63% premium over the closing price on Friday.
According to Larry Page, CEO of Google:
“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.”
The sale is pending the approval of the EU, The US Regulatory Comission, and the Morotola Mobility Share holders. The acquisition should be completed pending approval at the end of 2011 or the beginning of 2012
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Google to Acquire Motorola Mobility |
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| Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences |
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| MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. – Aug. 15, 2011 – 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.”
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 |
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- Breaking: Google Buys Motorola For $12.5 Billion (techcrunch.com)
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- Google Is Buying Motorola [Google] (gizmodo.com)
