Google buys Motorola Mobility for $12.5bn

Aug 15, 2011
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Google buys Motorola Mobility for $12.5bn

Google has announced that it is buying Motorola Mobility, in a $12.5bn deal expected to close either by the end of the year or the start of 2012. Described by Google CEO Larry Page as a move to "supercharge the Android ecosystem" the deal will see Motorola operated as a separate business with the company remaining an Android licensee.

"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" Larry Page, CEO, Google

According to Google, Motorola's devotion to Android figured big in the company's decision to purchase. Back in 2008, Motorola decided to leave its own OS and others like Windows Mobile, and devote resources entirely to building an Android-based range. It seems unlikely that Motorola will now look to Windows Phone, even if Microsoft was to offer them a Nokia-style deal.

"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" Sanjay Jha, CEO, Motorola Mobility

Page also says that Motorola's home-entertainment business will feel some refreshed attention, likely to see the first Motorola Google TV boxes arrive among other things. The acquisition will also net Google a significant patent portfolio, one which Motorola suggested recently would put it in a strong position versus other Android OEMs.

"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" Andy Rubin, Senior Vice President of Mobile, Google


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