Google to acquire Motorola Mobility for $12.5 Billion


Google has just announced that it is acquiring one of the biggest names in the mobile phone industry and one of pioneers in the telecommunications space – Motorola Mobility for $12.5 billion. Google will continue to operate Motorola Mobility as a separate entity. The deal is still pending regulatory approval considering the sheer size of the transaction and is expected to be completed in 2011 end or early 2012.

motorola google

Investor Call Live Blog

2011-08-15T13:06:04 Dear FoneArena readers .. thanks for tuning in
2011-08-15T13:03:53 Ladies and Gentleman you may now disconnect and have a wonderful day !
2011-08-15T13:03:34 We want to thank all the employees at Google and Motorola Mobility for all their hardwork
2011-08-15T13:03:00 We are very excited about the opportunities going forward
2011-08-15T13:02:23 Android is growing like crazy
2011-08-15T13:02:12 #larry page final word . We at Google at very excited about this
2011-08-15T13:01:52 A. We will continue to build patent potfolio
2011-08-15T13:01:36 Q about patent portfolio again and strategy going forward
2011-08-15T13:00:24 There is a transition from Settop box to IP world
2011-08-15T12:59:49 Ans:We are really excited to work with Motorola
2011-08-15T12:59:31 Q : Hardware strategy and how patents will help .
2011-08-15T12:58:11 Talk about Nexus Program right now
2011-08-15T12:56:37 Ans: We will be in good position to defend Android and all the partners and ecosytems
2011-08-15T12:55:40 Question : Legal ramifications and how Price of deal is fixed
2011-08-15T12:54:58 Answer : this is pro competitive deal. Will require approval in USA and Europe
2011-08-15T12:53:57 Question about FCC and regulatory issues with deal
2011-08-15T12:52:29 #Larry – no change in how we run android. Our partners are excited about it
2011-08-15T12:52:08 How do you think this changes the overall mobile ecosytem
2011-08-15T12:51:15 Question about some financials and licensing fees
2011-08-15T12:50:22 #Larry – really excited about this deal
2011-08-15T12:49:11 Q.What convinced about acquiring Motorola Mobility
2011-08-15T12:48:42 and they seemed very enthusiastic about the deal
2011-08-15T12:48:27 spoken to top 5 android licensees
2011-08-15T12:48:12 question about discussion with other android partners
2011-08-15T12:47:41 we would be able to support Motorola mobility and android ecosystem better
2011-08-15T12:47:14 #sanjay jha of motorola we have over 17K patents worldwide and over 7.5k patents pending approval
2011-08-15T12:45:46 calls are dropping in the conference call #early morning troubles lol
2011-08-15T12:44:45 2nd question from Credit Suisse
2011-08-15T12:44:35 The first question was about the legal stuff surrounding android and it just got interrupt
2011-08-15T12:43:27 Its Q&A time now
2011-08-15T12:42:45 We will run motorola as a separate business
2011-08-15T12:42:36 The transaction was approved by board of directors of both the companies
2011-08-15T12:42:21 Google to acquire Motorola for $40 per share
2011-08-15T12:41:26 Top 2 android makers in China
2011-08-15T12:41:11 in US we have strong relationship with Verizon , AT&T , Sprint
2011-08-15T12:40:53 we committed to android in 2008
2011-08-15T12:40:32 our relationship with android began years ago
2011-08-15T12:40:20 to take cutting edge products to next level
2011-08-15T12:39:51 Good morning from Sanjay Jha

Here are the quotes from other Android handset makers

“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

– Peter Chou
CEO, HTC Corp.

“I welcome Google‘s commitment to defending Android and its partners.”

– Bert Nordberg
President & CEO, Sony Ericsson

“We welcome Google‘s commitment to defending Android and its partners.”

– Jong-Seok Park, Ph.D
President & CEO, LG Electronics, Inc.

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.

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Author: Varun Krish

Varun Krish is a Mobile Technology Enthusiast and has been blogging about mobile phones since 2005. His current phones include the Apple iPhone 13 Pro and Google Pixel 6. You can follow him on Twitter @varunkrish and on Google+ You can also mail Varun Krish