We were wondering if Google would do anything to gear up for a fight that Apple is bent on bringing to the Android. Google tried to buy some patents. Then went tick for tack with Microsoft over not winning any. They looked pretty childish in the press over it as well. It seems that Google had an Ace in it’s sleeves. A 12.5 Billion dollar deal does not just happen over a weekend. This must have been in the works for a while. It should be interesting to see what if anything Apple has to say about this deal. Also as a side bar. Note to RIM; these are the type of deals you should be looking at doing to help your company out.
Google has more than 150 million Android devices have been activated worldwide. There are more than 550,000 devices being turned on every day. They are in over 122 countries. Given Android’s phenomenal success brings a lot of fear from the other market leaders. Namely Apple. Apple has been going after Android tablet and phone makers as of late. With the way Android was build and the open source nature of the OS. It was hard for companies to defend themselves. Apple has a whole lot of money to through into the law system and comes up with a new patent every week.
Google and it’s Android makers were at a major disadvantage. That is why I am so excited today to announce that we have agreed to acquire Motorola. Google paid $12.5 billion to purchase smartphone vendor Motorola Mobility. That is small change to Google. You might be wondering how does this effect Samsung and other companies that use the OS. The acquisition will not change the way Google handles the Android platform. Motorola will remain a licensee of Android. It will still be open for others to use. Although do look out for MotoBlur to be removed in the not to distant future. and Android will remain open.
Google said it will run Motorola as a separate business. Google CEO Larry Page explained the acquisition will help bolster the tech giant’s patent portfolio. That is the main reason that Motorola was brought. To be in a position to better protect Android as a whole. Even though Motorola will test future versions of the OS before others. Samsung, Sony Ericsson, HTC, and LG have all issued statements in support of the acquisition. They realized that it is good for business as a whole. They had the following to say:
- J.K. Shin, president of Samsung’s Mobile Communications said “We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem”
- Sony Ericsson president and CEO Bert Nordberg said “I welcome Google’s commitment to defending Android and its partners”
- LG’s president and CEO Jong-Seok Park said “We welcome Google’s commitment to defending Android and its partners”
- HTC’s CEO Peter Chou said “We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem”
Google CEO Larry Page wrote the following:
“The U.S. Department of Justice had to intervene in the results of one recent patent auction to ‘protect competition and innovation in the open source software community’ and it is currently looking into the results of the Nortel auction. 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 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.