Google has made its decision to acquire Motorola Mobility public this morning, announcing the acquisition worth $12.5 billion via The Official Google Blog (that’s $40 per share, 60% higher than the company’s closing price as of Friday):
Today, more than 150 million Android devices have been activated worldwide—with over 550,000 devices now lit up every day—through a network of about 39 manufacturers and 231 carriers in 123 countries. Given Android’s phenomenal success, we are always looking for new ways to supercharge the Android ecosystem. That is why I am so excited today to announce that we have agreed to acquire Motorola.
This is obviously being looked at by most analysts as a move by Google to beef up their patent portfolio in the midst of the smartphone patent wars. It appears Google plans to continue running Motorola as a separate company, meaning the brand itself isn’t in jeopardy as of yet. However, this could easily be Google’s first step in the direction of gaining more control over the manufacturers that run Android. Even with Android making huge strides in recent months, Apple continues to dominate the smartphone market with their unique approach of building both hardware and software to compliment one another (at the same time as keeping the intellectual properties related to their products under one roof).
Google and Motorola will be holding a press conference at 8:30 ET. Grab the live webcast here. A snippet from the official press release below, if you’re interested. We’ll keep you posted as more info becomes available.
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences
MOUNTAIN VIEW, CA and LIBERTYVILLE, IL – AUGUST 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.
expand full story