Google announced yesterday that it plunked down a measly $12.5 billion, yes billion, to buy Motorola Mobility from the gadget making company. This move will help Google in the fight against anti-competitive suits from MS, Apple, and others who go after Google’s lack of patents in the mobile space. The Mobility acquisition now gives Google access to over 14,600 patents and 6,700 pending patents to put into their portfolio. This is a bold move to protect the future of Google’s Android OS, which will still remain an open source system as the Motorola Mobility division will be run separately from the Android division.
I applaud this move by Google as it should give Android a more stable and uniform platform to keep its OS up to date. Other Android partners will still make Android based phones, but now like Apple’s iPhone line Google should have complete control over the Motorola branded Android devices. This could potentially mean the world for Android users who have Motorola devices. Now Google should be able to pump down OS updates in a timely manner, which is one of the biggest negatives I experienced with my Android phones. Google would roll out a new version of Android, but it would literally take up to a year for those updates to make it to all of the handsets in the Google Android licensing fleet. Now that Google owns around 30% of the Android hardware market share they could also strong arm other manufacturers like HTC and Samsung to keep their Android devices up to date as well.
Google Became the 2nd Largest Android Hardware MFG Overnight
I’m sure there’s all kinds of red tape to work through, but I’d anticipate on seeing some official Google Android phones from Motorola sometime in mid to late 2012. If anything 2012 should be a very interesting year for the Android platform. You can read the whole press release below. You’ve been liking when Google opens up that fat a*s wallet of theirs…
Google Motorola Mobility Acquisition Press Release
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.
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