I leave the house for a little bit this morning and the tech world goes bonkers with Google announce a $12.5 billion dollar purchase of Motorola Mobility. Android fans take note as now there is going to be a whole lot of Android love from Motorola and maybe (hopefully) even the destruction of MotoBLUR. You hear that Google, the tech world wants you to destroy MotoBLUR.
Google is spending a whole lot of cash to turn Motorola into a “dedicated Android partner” looking to “supercharge the Android ecosystem.” Of course this is as much about patents as it is about Google looking to grow Android with Motorola’s Intellectual Property a huge reason this deal was put together.
Google CEO Larry Page has this to say:
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.
Google of course has said that they remain committed to maintaining an open Android ecosystem and that Motorola will operate as an independent company. In other words Motorola will not become the Google phone and they will still have to compete with the likes of Samsung, HTC and LG to manufacturer the next Nexus device.
Google’s manufacturing partners seem upbeat about the deal publicly but one really has to wonder just how excited they are at the prospect of a Google purchase of one of their biggest rivals.
Peter Chou, CEO of HTC:
“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”
Jong-Seok Park, President and CEO of LG Electronics Mobile Communications Company:
“We welcome Google‘s commitment to defending Android and its partners.”
J.K. Shin, President of Samsung Mobile Communications Division:
We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”
Bert Nordberg, President and CEO of Sony Ericsson:
“I welcome Google‘s commitment to defending Android and its partners.”
As this story is developing we’ll be updating the post throughout the day!
Full Press Release:
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences
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
Webcast Information
Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live athttp://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.
About Motorola Mobility
Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.