Breaking news: here’s an exciting news story! Google has signed an agreement to buy Motorola for $40 per share, and with 63% of the shares, the final price for Motorola was $12.5 billion dollars out of Google’s bank account. The acquisition has been reported to take place either in the late quarters of 2011, or early in 2012.
We have yet to know what other Android manufacturers think of this purchase, as Google is the create of the well-known Android operating system for both smartphones and tablets. LG, Samsung, HTC and other manufacturers might find it hard to compete with Motorola now as Google is their main stock holder, even though Google has officially said that “Motorola will be ran as a separate business”, just under Google’s lead.
Google has also said that Android will continue to be open source for other manufacturers, so we hope this acquisition won’t ruin the opportunities of other businesses to acquire customers, as that would lead to quite a few unhappy customers and Android users.
Larry Page, the CEO of Google, has said that the acquirement will increase Google’s patent portfolio, and is a great addition to their current one. We as consumers hope that Google won’t mainly focus on giving Motorola their newest OS’s first, as well as giving them the opportunity to make the next Google-phone, Nexus Prime. First in line is most likely, and hopefully Samsung, who will be making the new Nexus.
If you’re interested in the official press release:
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.
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.