Breaking: Google Buys Motorola Mobility For $12.5 Billion


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Breaking: Google Buys Motorola For $12.5 Billion

Google just announced that it is acquiring Motorola.

press release below, updates following:

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.?(BUSINESS WIRE)?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.

?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 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.

Source: TechCrunch

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This looks interesting.

I hope this will also mean more Motorolla devices outside US.

But in general I hope they will still manage to keep all the partners happy and retain Samsung, HTC, LG as top Android partners.

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Plus, it may be an answer to MS-Nokia deal, since their CEO, Sanjay Jha said that he would like a similar deal to sell WP7. That was their cue to buy them.

Unlikely, surely this has ben in works for some time. Maybe WP thing was to drive up the price.

On other hand they are puting a big premium on so it could well be a last minute thing

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Considering the amount of patents Motorola has, Google has added some Safety to Android Makers.

And could someone explain to me where is this 63% premium coming from? Google Finance shows they have always been trading at this range.

Now the game gets even more interesting.

P.S - Apple should have brought them Long Long ago, 12.5 Billion is a bargain.

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Regulatory approval is going to be tough.

I don't think so. Recently I read Motorola CEO telling investors, that they won't have to pay up to Apple and Microsoft, because their patent arsenal is big. I see this as Google's reason. They are buying protection from APPL & MSFT. And some law guy stated that he is concerned about Novell's Patent being sold to APPL & MSFT, because of Android's "safety". I think this deal could create a balance, which Regulation's Committee works to create.

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I don't think so. Recently I read Motorola CEO telling investors, that they won't have to pay up to Apple and Microsoft, because their patent arsenal is big. I see this as Google's reason. They are buying protection from APPL & MSFT. And some law guy stated that he is concerned about Novell's Patent being sold to APPL & MSFT, because of Android's "safety". I think this deal could create a balance, which Regulation's Committee works to create.

You mean Nortel 's patents. Right?

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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.
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You could see this coming, they have slowly declined in the past two decades in the UK at least. A lot of their phones already use android and they have the great Droid lineup.

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And could someone explain to me where is this 63% premium coming from? Google Finance shows they have always been trading at this range.

Are you sure you're looking at Motorola Mobility? Looks to me like it's been well under $30 for several months now.

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Well I guess I won't be buying any more Motorola products -- a brand I used to trust. :(

Why not? Google didn't buy motorola, they bought the mobile division of motorola, which they where trying to jeteson for years

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Well I guess I won't be buying any more Motorola products -- a brand I used to trust. :(

Why would Google buying them make them any less trust worthy?

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