In an announcement that surprised many analysts and tech insiders. Google announced on Monday that it will be acquiring Motorola Mobility.
On the official Google investor blog, the company posted the details: "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."
“We have shared a productive partnership with Google to advance the Android platform," said Motorola Mobility CEO Sanjay Jha, "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.”
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”
A further post by Page on Google's official blog underlines the shift this could cause in the increasingly important patent conflicts between tech giants. "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."
Google will be operating Motorola Mobility as a separate division, continuing existing licensing agreements as well as the company's commitment to an open platform. Google's Senior Vice President of Mobile, Andy Rubin, confirms that "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.”
Considering Motorola's 17,000 patents, analysts are certain about adding patent protection -- but they also question whether this will cause undue competition with other Android device manufacturers. For the first time, Google is now entering the hardware side of the business, and companies such as HTC, Sony Ericsson, Samsung, LG, and others can only be questioning how this will affect their relationship with the OS developer.
James Lee Phillips is a Senior Writer & Research Analyst for IBG.com. With offices in Dallas, Las Vegas, and New York, & London, IBG is quickly becoming the leading expert in Internet Marketing, Local Search, SEO, Website Development and Reputation Management. More information can be found at www.ibg.com. PageRage provides free Facebook layouts and Facebook backgrounds for your Facebook profile. PageRage caters to numerous styles and design preferences.