Google to Acquire Motorola Mobility for $12.5 Billion

Google announced on Monday that they have entered into an agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion. 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 other handset makers will still be able to use the open source operating system. The acquisition of Motorola Mobility will enable Google to strengthen its ties between hardware and software. Google’s Android platform can now be installed on devices that are increasingly tailored for running the open source operating system. In other words, Google’s acquisition of the handset maker will allow them to create devices that better suit the capabilities and functionality of the Android platform. The deal is pending regulatory approval in the United States, Europe, and other regions, and is expected to be completed by late 2011 or early 2012.

“We expect that this combination will enable us to break new ground for the Android ecosystem,” said Andy Rubin, senior vice president of mobile at Google. “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.”



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