1. calaviqpfza4's Avatar
    08-15-11 06:56 AM
  2. jinxednuance's Avatar
    Just about to post it...


    Google and Motorola Mobility have announced an agreement whereby Google will acquire Motorola for $12.5 billion. The acquisition price equates to $40 per share of Motorola stock, or a premium of 63% over Friday’s closing price. The move is considered to be an effort that will better-align Google to compete with Apple’s iPhone, which owned two-thirds of profits among the world’s top-8 smartphone vendors in the second quarter. A Google-owned hardware arm will be able to hold complete control over device hardware, software and services, resulting in an end-to-end user experience that is completely under Google’s control. “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” Google CEO Larry Page said in a statement. “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.” It is unclear how this might affect Google’s relationship with other Android partners. The deal is subject to regulatory approval, of course, and it is expected to close in late 2011 or early 2012. The full press release follows below.

    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.
    08-15-11 06:59 AM
  3. mustangv8's Avatar
    $40 a share, gd I wish I owned some MMI
    08-15-11 06:59 AM
  4. Wretch 12's Avatar
    The telegraph (British newspaper) just confirmed it on their news ticker and are 'writing an article on it now'.
    08-15-11 06:59 AM
  5. howarmat's Avatar
    this is pretty big. no more moto blur, unlocked bootloaders and generally some of the best hardware for android phones. i really want to see what they bring out soon
    aNYthing24 likes this.
    08-15-11 07:00 AM
  6. Skeevecr's Avatar
    Regardless of Google's comments to the contrary, I think the likes of HTC and Samsung are not going to enjoy reading this announcement.
    08-15-11 07:02 AM
  7. jfs101's Avatar
    Saw this a few minutes ago... Guess the Nexus M is next in line!. Wonder if now they're going to compete with other manufacturers or just use those patents Motorola has for royalties.

    Posted from my CrackBerry at wapforums.crackberry.com
    08-15-11 07:02 AM
  8. Kansas City Mack's Avatar
    Looking forward to this as I've always been a fan of Motorola phones. Hopefully this means that Google will abandon Blur and ship these Moto's with vanilla Android.
    ADGrant, bobocox1 and lssanjose like this.
    08-15-11 07:02 AM
  9. chiefbroski's Avatar
    Just watch Google start charging for future Android OSes or even just put the new OS on Motorola's phones...all the other Android manufacturers would be left in the dust....

    Google could really annihilate all the high-end android competition overnight. But would they do that as it would result in a little less ad revenue?
    08-15-11 07:07 AM
  10. jfs101's Avatar
    Microsoft is partnering big time with Nokia, Google bought Motorola Mobility... Who will Apple buy? RIM for whatever juice they can squeeze from the Berry?. If you would have told me back in 1991 that Sonic was going to end up in Nintendo's hardware I would have advise you to ask for a prescription change on those wacky pills.

    Posted from my CrackBerry at wapforums.crackberry.com
    08-15-11 07:08 AM
  11. Kansas City Mack's Avatar
    Just watch Google start charging for future Android OSes or even just put the new OS on Motorola's phones...all the other Android manufacturers would be left in the dust....

    Google could really annihilate all the high-end android competition overnight. But would they do that as it would result in a little less ad revenue?
    Why would they do that? They would be shooting themselves in the foot. You don't become the fastest growing company in the history of the world by being stupid.
    08-15-11 07:10 AM
  12. howarmat's Avatar
    Regardless of Google's comments to the contrary, I think the likes of HTC and Samsung are not going to enjoy reading this announcement.
    they will probably not like it but i still think they are in great postions. Both have huge android sales and will continue too. Sense is the best UI out there hands down. Samsung still has the best screens in the market too. Sure this will impact their sales but i think they are just as established as moto/google are
    08-15-11 07:13 AM
  13. 01itr's Avatar
    Nom nom nom patents.

    Motorola Patents a Google Ally vs Apple - TheStreet

    I believe this is mostly an IP issue. Motorola has some nice patents, as you can see from this article from last year's bout of lawsuits:

    Virtually All Apple's Products Infringe Motorola's Patents - Motorola - X-bit labs

    This is what Google needs to ensure it will not fall to an endless barrage of lawsuits.
    08-15-11 07:15 AM
  14. dynot's Avatar
    Not to get off topic here but could this be the first of other acquisitions? If RIM were a target who would buy them...Microsoft? MS has always been heavily involved in the business world and combined with the Windows phone poor market share wouldn't that be a logical move for them?
    08-15-11 07:16 AM
  15. XPEH's Avatar
    Hmm... Intersting. So much for the Google buying RIM arguments...
    08-15-11 07:17 AM
  16. 01itr's Avatar
    Just watch Google start charging for future Android OSes or even just put the new OS on Motorola's phones...all the other Android manufacturers would be left in the dust....

    Google could really annihilate all the high-end android competition overnight. But would they do that as it would result in a little less ad revenue?
    ----------

    Google will run Motorola Mobility as a separate business that will remain a licensee of Android. Google also said Android will remain an open platform.
    chiefbroski likes this.
    08-15-11 07:18 AM
  17. 01itr's Avatar
    Not to get off topic here but could this be the first of other acquisitions? If RIM were a target who would buy them...Microsoft? MS has always been heavily involved in the business world and combined with the Windows phone poor market share wouldn't that be a logical move for them?
    I really doubt that Microsoft would by RIM now that they basically own Nokia. That would be pretty redundant. Plus all of there investments in their mobile OS would go to waste.

    I don't see anyone purchasing RIM unless QNX is a flop next year.
    08-15-11 07:20 AM
  18. 01itr's Avatar
    Hmm... Intersting. So much for the Google buying RIM arguments...
    I was kind of hoping for this, but I knew it wouldn't happen. Android is too big and too young for Google to abandon for QNX, which would be what they would use if they acquired RIM.
    08-15-11 07:22 AM
  19. chiefbroski's Avatar
    Why would they do that? They would be shooting themselves in the foot. You don't become the fastest growing company in the history of the world by being stupid.
    I asked that very same question in my post too. I was hoping for an educated answer or idea.

    Maybe Google thinks they can make money by licensing their OS? Maybe with the only recent version of Android on one phone it would drive up Motorola phones sales on high-end android phones? Obviously if Motorola was the only high-end android phone with the best software, it will help them. Google could still freely license their OS to other manufacturers, but it wouldn't be running the latest and greatest, making them lower-end phones.

    I don't know, for all I know, they're doing OK as they are so maybe it's not a good idea. But I wouldn't dismiss it immediately as being stupid.

    EDIT: But yeah, Google loves having stuff free and open source software, which I like and appreciate. So I can see them simply using it to build a better android phone
    Last edited by chiefbroski; 08-15-11 at 07:29 AM.
    08-15-11 07:22 AM
  20. kevinnugent's Avatar
    HP would like RIM. And Google could still buy them just for fun. It's an interesting time.
    08-15-11 07:25 AM
  21. Skeevecr's Avatar
    I believe this is mostly an IP issue. Motorola has some nice patents, as you can see from this article from last year's bout of lawsuits:
    That will be a big reason, but it also kills off a theme that dilutes the android brand and frees them up from relying on 3rd parties for the future Nexus models.

    One interesting discussion coming up in the future will be between VZW and Google as you would not expect the latter to think very highly of the Droid rebranding of android that VZW uses.
    08-15-11 07:26 AM
  22. Tre Lawrence's Avatar
    Interesting... I knew Google had something up their sleeve, but wow.
    08-15-11 07:27 AM
  23. 01itr's Avatar
    I asked that very same question in my post too. I was hoping for an educated answer or idea.

    Maybe Google thinks they can make money by licensing their OS? Maybe with the only recent version of Android on one phone it would drive up Motorola phones sales on high-end android phones? Obviously if Motorola was the only high-end android phone with the best software, it will help them. Google could still freely license their OS to other manufacturers, but it wouldn't be running the latest and greatest, making them lower-end phones.

    I don't know, for all I know, they're doing OK as they are so maybe it's not a good idea. But I wouldn't dismiss it immediately as being stupid.
    Patents

    That is the only reason as far as I can see. Google has already said they are running Moto as a separate company and the OS is still open. But now Google has access to a MUCH larger patent portfolio, which is exactly what they need.
    08-15-11 07:28 AM
  24. Skeevecr's Avatar
    they will probably not like it but i still think they are in great postions. Both have huge android sales and will continue too. Sense is the best UI out there hands down. Samsung still has the best screens in the market too. Sure this will impact their sales but i think they are just as established as moto/google are
    They will do fine in general, but I would expect them to look to expand their wp7 offerings to ensure they are not too reliant on just the one company that is now a direct competitor, albeit ms' closeness to nokia wouldn't really change that too much.
    08-15-11 07:28 AM
  25. howarmat's Avatar
    They will do fine in general, but I would expect them to look to expand their wp7 offerings to ensure they are not too reliant on just the one company that is now a direct competitor, albeit ms' closeness to nokia wouldn't really change that too much.
    yep i would agree expanding on those fronts would be a good move for sure too.
    08-15-11 07:32 AM
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