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Monday, 15 August 2011 14:48

Google acquires Motorola Mobility for $12.5 billion

Written by Fuad Abazovic

Supercharge the Android, kind off

Google has finally become a hardware manufacturer. It wanted to become Apple for years and after two more or less failed attempts with Nexus phones, they realized that the best way to compete with Apple is to acquire a shaken up but well known business.

As of today, Motorola mobile belongs to Google and Google has cashed out $40.00 per share in cash, total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. This kind of overpricing still sounds better than 8.5 billion what Microsoft spent to acquire Skype.

Apple will get some decent competition and despite the fact that Google claims that Motorola Mobility will remain a separate company, you cannot shake the thought that new Motorola mobiles will have a huge advantage over anyone else.

Of course, many vendors got scared, and it was funny and sad at the same time to read the official comments. You can read them below but you can imagine even from these few lines, how “thrilled” everyone is.

“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

You have to have in mind that Motorola produced some very memorable members of the tech society, including Hector Ruiz and the equally successful Motorola Xoom. Google can do quite ok with this wireless business and in we got things right, Google will start looking in wireless provides to complete the dominance. Of course, despite a string of largely unsuccesful products in recent years, Motorola still has quite a few valuable patents and know-how. This is what Google might be after in the long run.

Umbrella and Skynet are much closer than you can imagine.

You can get a few more details at the official press release here.

Last modified on Monday, 15 August 2011 17:44
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+3 #1 kartikkg 2011-08-15 16:30
i will be buying motorola for sure
-1 #2 Marburg_U 2011-08-15 16:35
Lots of butthurt today.
+3 #3 bardenck 2011-08-15 16:40
Quoting kartikkg:
i will be buying motorola for sure

you will be buying GOOGLE!! yes sir, never cared much for motorola phones back in the day, but i must have my google!
+1 #4 Exodite 2011-08-15 17:12
Dear lord Fuad, you're really Jack aren't you?

This has precious little to do with wanting a hardware design team, Google has already noted that MMI will remain a separate company, and a lot to do with acquiring a patent portfolio that can effectively defend the platform - including OEMs - from outside patent litigation attacks.

This is great news for the platform as a whole.
-2 #5 fed44 2011-08-15 18:40
Well all those companies except sony ericson (nokia directly headed to them) were clever enough to sort of jump on the windows boat beforehand, now lets see if they can shift their primary focus to it aswell.
+3 #6 CNCFarraday 2011-08-15 18:45
Hear that ... ?

That's the sound of patent trolls jumping out the window ...

-7 #7 dan 2011-08-15 20:57
If Tegra was so good, why was Moto struggling? I rest my case.
+3 #8 mystikalrush 2011-08-15 22:00
Now google...unlock my DroidX and all other motorola bootloaders!
+2 #9 muddocktor 2011-08-16 17:04
I wonder if this will drive other Android phone manufacturers to start offering Windows OS phones now? Seeing as now Google is a direct competitor to them.
0 #10 fteoath64 2011-08-20 05:58
Fantastic move Google!. This purchase not only gives them 17K patents for mobiles, but a business they can "play with". It is a smack in the face to the RockStar group who paid $4.5B for the useless Nortel patents.
Those greedy idiots ended up with pieces of worthless paper for a lot of money. I hope Google will diversify the product models of both SmartPhones and tablets with MotoG.

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