Google to buy Motorola Handset Business

google to buy motorola

Google just announced that it is acquiring Motorola Mobility. This acquisition is first of its kind, where Google is buying its own Android partner.

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.

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Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the remarkable revolution in mobile computing we are all enjoying today. Its many industry milestones include the introduction of the world’s first portable cell phone nearly 30 years ago, and the StarTAC—the smallest and lightest phone on earth at time of launch.

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.

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.

How this affects Apple?

With Motorola’s patents Google will be more closer to Apple in providing a fully integrated mobile offering. Google finaaly got its way of being more like Apple. Not much of a change for Apple, which wins by better product design, but for Google and Motorola, this will enable them to stay in the mobile market.

How this affects Microsoft?

Motorola’s patents give Google a better legal position against Microsoft and may enable them to stop Microsoft from harassing Android manufacturers.

How this affects other Android Partners like Samsung and HTC?

In this case I see two things – Either Google will provide better legal protection for all Android manufacturers, that will make Samsung and HTC happy. or may be Motorola will get an edge over other Android manufacturers. Are you also able to smell Samsung and HTC getting together to beat this Google-Motorola thing?

About the author

I am chief editor on Techonzo. Technology Lover, good dreamer about future, Love to think in different way than the other people do, Die hard fan of USA
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Nikhil is a Guest enthusiast on Digital Insights and we feel so glad about it. If you also want to contribute and share your knowledge feel free to connect with us, here are some goodies for you

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