News
 

Bookmark and Share

(4) 

In a bid to more competitively compete against Apple, Nokia and other makers of mobile phones, Google on Monday said it would buy Motorola, once a successful supplier of mobile phones.

Google entered into a definitive agreement under which it will acquire Motorola Mobility for $40 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.

“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, chief executive officer of Google.

Today, more than 150 million Android devices have been activated worldwide, over 550,000 devices now lit up every day, through a network of about 39 manufacturers and 231 carriers in 123 countries.

Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the revolution in mobile computing. Its many industry milestones include the introduction of the world’s first portable cell phone nearly 30 years ago, and the StarTAC - the smallest and lightest phone on earth at time of launch. In 2007, Motorola was a founding member of the Open Handset Alliance that worked to make Android the first truly open and comprehensive platform for mobile devices, said Larry Page, the head of Google.

“We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies,” said Mr. Page.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the U.S., 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.

“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,” Andy Rubin, senior vice president of mobile at Google.

Tags: Motorola, Android, Google, Nokia, Apple, Microsoft

Discussion

Comments currently: 4
Discussion started: 08/15/11 04:44:28 PM
Latest comment: 08/17/11 11:45:10 AM

[1-4]

1. 
$12.5 billion huh Chump change
0 0 [Posted by: vid_ghost  | Date: 08/15/11 04:44:28 PM]
Reply

2. 
That is a very smart move on Google's part. Just on their 10s of thousands of patents alone, Motorola is worth the 12.5 B
1 0 [Posted by: goury  | Date: 08/15/11 05:54:01 PM]
Reply

3. 
your sub headline says 'Google Enters Market of Smartphones with Acquisition of Android'...
1 0 [Posted by: iiB  | Date: 08/16/11 02:49:04 AM]
Reply

4. 
12.5 billion $ or ~ 10 billion Euros.... I don't know if I can spell that number in one breath...Damn! How much was the acquisition of ATI by AMD??
0 0 [Posted by: TAViX  | Date: 08/17/11 11:45:10 AM]
Reply

[1-4]

Add your Comment




Related news

Latest News

Sunday, August 24, 2014

6:12 pm | Former X-Bit Labs Editor Aims to Wed Tabletop Games with Mobile Platforms. Game Master Wants to Become a New World of Warcraft

Thursday, August 21, 2014

10:59 pm | Khronos Group to Follow DirectX 12 with Cross-Platform Low-Level API. Khronos Unveils Next-Generation OpenGL Initiative

10:33 pm | Avexir Readies 3.40GHz DDR4 Memory Modules. DDR4 Could Hit 3.40GHz This Year

12:10 pm | AMD to Lower Prices of A-Series APUs for Back-to-School Season. New Prices of AMD A-Series APUs Revealed

Wednesday, August 20, 2014

10:53 am | AMD to Cut Prices on FX-9000, Other FX Processors: New Prices Revealed. AMD to Make FX Chips More Affordable, Discontinue Low-End Models

10:32 am | LG to Introduce World’s First Curved 21:9 Ultra-Wide Display. LG Brings Curved Displays to Gamers, Professionals

9:59 am | AMD Readies FX-8370, FX-8370E Microprocessors. AMD Preps Two New “Mainstream” FX Chips