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Google acquires Motorola for $12.5 billion

Mon 15 Aug 2011 1:40pm GMT / 9:40am EDT / 6:40am PDT
MobileBusiness

Deal will "supercharge" Android and boost Google's patents library

Google has agreed to buy Motorola Mobility for $12.5 billion in cash.

The deal has been approved by the boards of both companies, and will significantly strengthen Google's presence in the mobile phone market.

Android was the only operating system Motorola used across its entire range of devices, and Google CEO Larry Page predicted "explosive growth" for its products in future.

"The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences," Page wrote on the Google company blog.

"I am confident that these great experiences will create huge value for shareholders."

Google's senior vice president of mobile Andy Rubin claimed the deal would allow the company to "break new ground for the Android ecosystem." However, Motorola will be run as a seprate company, and Android will remain "an open platform and a vibrant open source community."

More than 150 million Android devices have been activated worldwide, with a further 550,000 added each day.

Page also commented on "anti-competitive patent attacks" from "companies including Microsoft and Apple" to restrict Android's growth by collaboratively buying patents from the now defunct Nortel.

"Our acquisition of Motorola will increase competition by strengthening Google's patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies."

The deal is due to complete by the end of this year, subject to the approval of Motorola's shareholders.

7 Comments

Terence Gage
Freelance writer

1,288 120 0.1
So, is this throwing down the gauntlet at Microsoft and Apple?

Must be a real coup for Google to bring a major manufacturer like this in-house, although Motorola are far from the major player they once were. I think they were second only to Nokia about 8 years ago in terms of market share.

Posted:3 years ago

#1

Glen Elliott
Partner/Head of Sales

57 2 0.0
Well, speaking to people in the market, this sort of sums up the deal:

Google is probably buying Motorola Mobility to acquire patents. Apple has lately played hardball with Google's Android phones (blocking its access entirely to some patent and not being willing to sell rights of use at any price) and now Google probably plans to do the same with Apple. There is no point of paying $12.5bn for Motorola's Cell Phone market share if it did not come with some key patents.

If this is the case, Nokia has the best portfolio of patetns, and Microsoft are already a partner of theirs, but then you also have Research in Motion (Blackberry) as a potential suitor instead. I can't see Apple buying any one as they prefer organic growth and have plenty of pantents as well.

Posted:3 years ago

#2

Gregory Keenan

102 11 0.1
??? Its going to be interesting to see how this works out.

Hopefully this will improve Motorola's appalling record on keeping their products up to date with the latest version of Android.

Posted:3 years ago

#3
"Page also commented on "anti-competitive patent attacks" from "companies including Microsoft and Apple" to restrict Android's growth by collaboratively buying patents from the now defunct Nortel. "

LOL Microsoft already deflated this lie. Why does google keep repeating this lie. They were offered to be part of the deal and they said no. Microsoft already produced the email proving this.

Posted:3 years ago

#4
Excellent news! I think its only a matter of time now, before Microsoft purchases Nokia (they have already embarked on a program to lower the value of Nokia shares ;).

So I wonder how many Motorola patents Apple infringe on? Once the deal goes through, looking forward to Google sending cease-and-desist letters to Apple, to stop iPhone/iPad shipments...

Posted:3 years ago

#5

Haven Tso
Web-based Game Reviewer

255 8 0.0
Google is really determined to knock Apple dead. They partnered with Samsung in the east, now they have Motorola and RIM is going to enable BlackBerry and Playbook to use Android apps on their platforms. It is an all front assault on Apple and Microsoft

Posted:3 years ago

#6
RIM needs to up its game fast. it has great productivity, but it needs to just do some simple common sense development eg. please revert to normal keyboard. get rid of the trackball. improve haptics. have more android apps. improve stability of the OS

Posted:3 years ago

#7

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