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Motorola Droid 3
Google will acquire Motorola Mobility for $12.5 billion USD

Well, we didn't see that one coming. Google just announced today via its official blog that itwould be acquiring Motorola Mobility, an American company that produces everything from the Wayans Family-esque lineup of Droid smartphones to the 10.1" Xoom tablet.

The transaction price comes in at a relatively modest (for Google) $12.5 billion, which at $40/share represents a 63 percent price premium over Motorola Mobility's closing price on Friday (MMI is up nearly 60 percent following the opening bell). Not surprisingly, the deal was unanimously approved by both companies' boards.

“This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world," said Sanjay Jha, CEO of Motorola Mobility. "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.”

“We expect that this combination will enable us to break new ground for the Android ecosystem," added Andy Rubin, Google's Mobile SVP. "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.”

If there are no legal roadblocks in Google's path, the deal will be completed by early 2012.

According to Google CEO Larry Page, the move to purchase Motorola Mobility will not have an affect on the openness of the Android operating system. "We will run Motorola as a separate business," said Page. "Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences."

Page goes on to say that we should expect to see great things on the hardware and software side of things:

The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. I am confident that these great experiences will create huge value for shareholders.

This purchase will also give Google access to a treasure trove of patents in order to defend itself from competitors. According to The Street, Motorola has a war chest of over 17,000 patents.

Interestingly, Motorola Mobility's Sanjay Jha seemed quite receptive to using Microsoft's Windows Phone 7 operating system just last week. We can now safely assume that those notions are completely dead.

Updated 8/15/2011 @ 3:30pm

Google has posted four quotes from other Android handset makers regarding the acquisition of Motorola Mobility. It seems quite odd how robotic and same-sounding all of the quotes are…

“We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.” -- J.K. Shin, President, Samsung, Mobile Communications Division

“I welcome Google‘s commitment to defending Android and its partners.” -- Bert Nordberg, President & CEO, Sony Ericsson

“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.” -- Peter Chou, CEO, HTC Corp.

“We welcome Google‘s commitment to defending Android and its partners.” -- Jong-Seok Park, Ph.D, President & CEO, LG Electronics Mobile Communications Company



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Patents
By nidomus on 8/15/2011 8:13:12 AM , Rating: 0
Does Motorola Mobility have a large stash of patents? This is probably a move to increase their patent portfolio in order to gain a better position for licensing deals and to help with possible future patent litigation.




RE: Patents
By Dreamwalker on 8/15/2011 8:28:34 AM , Rating: 5
quote:
Motorola has a war chest of over 17,000 patents


So yes, it does.


RE: Patents
By nidomus on 8/15/2011 8:41:49 AM , Rating: 2
D'oh. Of course... read everything but the very end of the article.


RE: Patents
By kanabalize on 8/15/2011 8:55:46 AM , Rating: 2
First order of business...

Change the damn company name....


RE: Patents
By MrTeal on 8/15/2011 10:57:00 AM , Rating: 2
What do you have against MoMo?


RE: Patents
By Omega215D on 8/15/2011 11:02:43 AM , Rating: 3
Moto-G!

Hopefully this might mean we'll have a Nexus phone with a slide out keyboard. As well as assisting to put Apple in its place next time it decides to sue willy nilly.

Black rectangle... seriously?


RE: Patents
By ThatNewGuy on 8/15/2011 11:31:44 AM , Rating: 2
Moogle?


RE: Patents
By thisisaname on 8/15/2011 7:36:06 PM , Rating: 2
Mo Google?


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