Google to Acquire Motorola Mobility for $12.5B
- Details
- Category: Internet
- Published on Thursday, 18 August 2011 07:00
It has been announced by the Google company on Monday morning (15th August, 2011) that they have reached a mutual agreement with Motorola Mobility Holdings, Inc. under which Google wil pay $40.00 per share in cash, making it almost 12.5 billion in total.
This definitive agreement has been approved by both of the companies’ directors. The agreement is planned to be signed at the end of this year or at the beginning of 2012.
Motorola Mobility is known to be one of the 39 manufacturers of mobile phones and other similar devices working on Android operating system, owned by Google itself. Taking a general look at the history of Google, with pros and cons, we can witness that buying a hardware company is nowhere near Google’s original goal but it is underlined in the statement that “Motorola Mobility will enable Google to supercharge the Android ecosystem.”
In a blog post statement, published only recently, Google co-founder and CEO Larry Page underlines that Google has bought Motorola not because of its efficiency or technical strength in handsets, but also being in the forefront in the fields of home devices, and video suppliers. This is also explained in the statement by Mr. Page saying that “acquisition of Motorola will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”
What’s more, it is stated in the press release that Motorola’s total commitment to Android operating system in mobile devices is amongst the many reasons why these two companies came to agreement. With this cooperation, we, as customers, will fully benefit from amazing experiences that would be created by the developer teams of these companies. Moreover, there will be no change in Google’s commitment to run Android as an open platform. It follows as: “Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business.”
Google Inc. Side’s Opinions
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.
Motorola Mobility Side’s Views
As for the side of Motorola Mobility Holdings, Inc. manager, 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.”
About Google Inc.
Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google Inc. has taken a breakthrough amongst the very few numbers of internet users at its time. Since then, they have improved the company and funded with very much money so that they could become one of the top property in all major markets. And nowadays, they are becoming a very huge company and also have many other competitive companies, such as Microsoft, Apple or so. Lastly, Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia and much more information can be found at google.com.
About Motorola Mobility
With the aim of simplifying, enriching, and connecting the lives of people, Motorola Mobility is a company that aims at creating innovative technological devices, and portables such as Android smartphones and tablets (the latest of which is Motorola Xoom); Wireless and Bluetooth accessories; end-to-end video and data delivery; and management solutions and so on. It is quite important to note that Motorola Mobility has become independent from Motorola earlier this year and started manufacturing its own devices. More info can be found at Motorola.com/mobility.
