Google buys Motorola Mobility for $12.5 billion

Google will acquire Motorola Mobility for $40 per share in cash, or a total of about $12.5 billion, a premium of 63 percent to the closing price of Motorola Mobility shares on Friday, August 12, 2011.

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

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,” said Larry Page, CEO of Google.

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,” said Sanjay Jha, CEO of Motorola Mobility.

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,” said Andy Rubin, senior vice president of Mobile at Google.

The deal will have far reaching implications in the mobile and OS segments.

By Telecomlead.com Team
editor@telecomlead.com