Monday, August 15, 2011

Google Acquires Motorola Mobility

Yes, it's true. Google is acquiring Motorola Mobility for $12.5 billion. Both boards have unanimously approved the decision. This move was likely made because of  Motorola’s massive patent portfolio. Google now looks to “supercharge” the Android operating system and enhance competition. 

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 begin_of_the_skype_highlighting            877-616-4476      end_of_the_skype_highlighting      (conference ID: 92149124). The call will also be webcast live at 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

Hopefully this means this means the eventual end of Blur and Motorola unlocking bootloaders of phones. Next Nexus device? Probably. Just remember, Android remains open and will be handed out to other handset makers just as it is now. But probably by holding one manufacturer, Android will be better than ever. Anyways, as I said earlier, this move was probably because of Motorola's patients. Motorola has some 17,000 patents that blanket much of the mobile world, which Google plans to use this portfolio to fully protect the future of Android.  While we all want Motorola to make the next Nexus, eliminate Blur, and unlock bootloaders, those ideas are all secondary to the legal battle that Android will be competing in for the foreseeable future.
HTC, Samsung, and LG have released their quotes about this move. Here is what they said: 

They are probably optimistic about this since it will help them with their legal battles against Microsoft and Apple.

Here is a video clip related to this:

So overall, I think this a really good move by Google and it should help Android a lot, especially with those pesky lawsuits.

Sources: DroidLifeFortune


  1. Well, I for one welcome Google's commitment to defending Android and its partners.
    I don't know about everyone else...

  2. a company buying patents to protect other companies rather than sue the pants off of them...

    a novel concept indeed.

  3. Well...I certainly hope this puts an end to Motoblur.

  4. I wonder what this will lead to...

  5. I guess this is good...right?

  6. This is obviously a move made for patents.