BREAKING NEWS: Google to Acquire Motorola Mobility for $12.5 Billion
Google has entered a definitive agreement to buy handset maker Motorola Mobility for $12.5 Billion or ($40 per share in cash, a 61% premium). Officials of the two companies say this will make the mobile computing space more competitive yet Android will still remain open source. Google will run Motorola Mobility as a separate company and it will still continue to license Android software. Between the words, however, this move will put Google in direct competition with Apple as they are no longer a mobile operating system software provider; but now have an end-to-end “stack” of software/hardware integration.
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 expected to close by the end of 2011 or early 2012.