Google Acquires Motorola Mobility – $12.5 Billion – $40 / Share

Putting a part of its earnings aside for the next acquisition, Google has got its hands on one of the big competitors in the mobile phone market, Motorola Mobility. 39 Billion was the in-pocket earning for Google, out of which $12.5 million is invested to acquire Motorola. The official news say –

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.

Motorola has a name not only for the mobile devices which have the Android operation system, but also for the solutions it provides for home based stuff, and the video solutions business. These were the most important reasons why Google opted to invest on them. Droid range of mobile phones, including the Motorola Droid, Droid 2 Global, Droid X, the smartphones like Motorola Atrix 4G, Motorola Droid Bionic, Motorola CliQ 2 and the tablet device named Motorola Xoom all have the Android OS and have been a big impact in the global market of smartphones and tablet devices.

Here is the entire press release –

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–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.

“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.”

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.

Agreeing to what many commentators in various blogs said, Google’s main intention of buying Motorola would be to get a hold on the big portfolio of Patents that Motorola maintains, and this would also give Google a hand on the different interface that Motorola develops and provides in its mobile phones. Though this acquisition will make an impact on the OS and other partners with Google, but Android OS will still remain open.