Monday, August 15th 2011

Google to Acquire Motorola Mobility

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.Source: Motorola Media Center
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36 Comments on Google to Acquire Motorola Mobility

#1
Red_Machine
Wow, Google will be able to make its own phones. Can anyone say price drop?
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#3
micropage7
one word.. cool
it would strenght google and motorola in android market
i guess it would have brighter future
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#4
micropage7
by: Red_Machine
Wow, Google will be able to make its own phones. Can anyone say price drop?
i guess its kinda hard. if you compare android phone price looks pretty competitive over the other os/phone
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#5
Kreij
Senior Monkey Moderator
by: Red_Machine
Wow, Google will be able to make its own phones. Can anyone say price drop?
I'm not sure about that.
The only reason that Google would have to buy Moto would be to integrate proprietary hardware to run the "supercharged android ecosystem".
Given that they will own the patents, this would mean that other phone manufacturers who want to implement the new features would have to get a (another) licence from Google to do so.
Seems to me this would make phones more costly, not less.

Disclaimer : I could be completely wrong.
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#6
Fourstaff
I wonder if it has anything to do with collecting patents.

I can see Google Nexus M
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#7
JrRacinFan
Served 5k and counting ...
by: Kreij

Seems to me this would make phones more costly, not less.
Wouldn't Google then have rights to now charge (or more) for licensing the OS? That would either drive up costs of future Androids or see less of other brands maybe "??" I don't see what Google is trying to do by this merger. Android is supposed to be open source due to being based on a linux core. I'm just rambling here but now if say Google were to also maybe buy **name a PC OEM** I would then see what they are doing. That would be attempting to get even more into the hardware market vs strictly software. Either way, this could also help consumers as well on the service end of things, if you have a problem with your 'droid, call up Google.

**Just me speaking out my butt with thoughts on the matter
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#8
de.das.dude
Pro Indian Modder
wait. in simple terms google is buying motorola?
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#9
JrRacinFan
Served 5k and counting ...
by: de.das.dude
wait. in simple terms google is buying motorola?
Just the "mobile platform" I think

I.E., think Droid X, Droid X2, Droid, Droid 2 Global, Droid 3.
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#10
FreedomEclipse
Crazy Dogmatic Bullsh!t!
by: Fourstaff
I wonder if it has anything to do with collecting patents.
+1

Back in the day Motorola also used to build x86 CPUs for the really early Apple Macs.

I know they still make processors for a few portable things for consumers and maybe a few things for industry but I think all of that has gone to shit with the appearance of ARM, VIA (nano) and Intels own Atom.

So Motorola could have an x86 licence lying around.
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#11
W1zzard
by: FreedomEclipse
So Motorola could have an x86 licence lying around.
won't help unless they make their own chipsets
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#12
FreedomEclipse
Crazy Dogmatic Bullsh!t!
by: W1zzard
won't help unless they make their own chipsets
maybe so, but that x86 license still opens up a lot of possible doors to them. they can talk to VIA about making chipsets anyway. VIA have been under the radar for a long time. and who knows if they will form a partnership.
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#13
The Witcher
One day Google will control the world.......
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#14
cheesy999
by: The Witcher
One day Google will control the world.......
doesn't sound too bad, google as a company are generally pretty nice to people, would you prefer a company like apple or microsoft? so that everything in life can be overpriced and have massive DRM

That said think of the level of advertisements you'd get with google!
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#15
de.das.dude
Pro Indian Modder
well, i dont like google's social networking sites, such awkward layouts and designs! which means they are mostly geeks with talent but no creative skills LOL
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#16
Wyverex
A cool quote I found on OSnews regarding this (breaking) news:

"This effectively means that while Microsoft and Apple thought they had bought a powerful anti-competitive patent club to hit Google with, they have now spent $4.5 billion on a patent portfolio about 1/4th the size of Motorola's."
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#17
Steevo
I saw this, Motorola has been disillusioning customers with mobile devices and the "open" platform for awhile. They almost went under but their great Droid helped them through, but their not so great policies for the rest of the world, and many other devices showing their true shit brown souls helped them to have a non stop barrage of insults on their facebook Europe page, and on most of their forums.


Motofail is almost a household name for those of us that paid hundreds of dollars for "the phone without compromise" only to learn how the compromising was of our ass, they sold a locked phone that took months and months, to fix issues with a phone that was sold with no flash and other major issues.

Tis why I now own Samsung Galaxy II instead of another moto product.
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#18
Damn_Smooth
Unlocked bootloaders on a Motorola phone???? Can we finally get a true sequel to the original Droid?
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#19
W1zzard
does google even need other companies now for android to succeed?
if google turns android closed source they would have instantly crippled all cellphone makers except for apple and nokia (oh teh irony) ?
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#20
Kreij
Senior Monkey Moderator
doesn't sound too bad, google as a company are generally pretty nice to people
Google does what is good for Google just like every other company.
They don't give a crap about you if it does not make them money or spins them in a positive PR light (so they can make more money).
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#21
kirtar
Why do I get the feeling that most if not all future Nexus phones will be motorola -_-
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#22
brandonwh64
Addicted to Bacon and StarCrunches!!!
by: Damn_Smooth
Unlocked bootloaders on a Motorola phone???? Can we finally get a true sequel to the original Droid?
I love my OG droid :)
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#23
Damn_Smooth
by: brandonwh64
I love my OG droid :)
It was an awesome phone. Motorola should never have fucked it up by locking the bootloaders on their later models.

I would have loved an unlocked Droid X at the time it came out.
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#24
micropage7
i believe google plan like apple, where they build os and build the hardware but not as explicit like that
Posted on Reply
#25
Kreij
Senior Monkey Moderator
Here's an interesting take on this ...
A very interesting move by Google this morning, buying handset hardware maker Motorola for $12.5 billion.

But let's be real: This deal could end up being a disaster.

How?

Well, let's have a look at the host of questions and challenges the deal raises, starting with this one:

How do HTC and Samsung, two of the leading Android-based smartphone makers, think about the fact that their "partner" Google is now competing directly with them for hardware sales?

And we mean, how do they really feel, internally, not "what are they saying in public?" (The quotes Google has assembled from HTC, LG, et al, all appear to have been written by the same PR person--note the similarity in the language.)

The only reason Android (and Google) have any share of the mobile game, after all, is because hardware makers like HTC and Samsung adopted Google's software platform. And now Google is stabbing them in the back.

By now, it's probably too late for Samsung and HTC to switch to another platform, so they'll have to smile and make the best of it. But still... having your software "partner" suddenly fire a missile down your throat can't feel too good.

And if Google-owned Motorola starts to gain share in the hardware business, the feeling (and tension) will only get worse.

Second, is this an acknowledgment that, in smartphones, Apple's integrated hardware-software solution is superior to the PC model of a common software platform crossing all hardware providers?

It certainly appears to be.

Android's biggest weakness thus far has been its fragmentation: The combination of many different versions, plus many different customizations by different hardware providers, has rendered it a common platform in name only. To gain the full power of "ubiquity"--the strategy that Microsoft used to clobber Apple and everyone else in the PC era--Google needs to unify Android. And perhaps owning a hardware company is the only way to do that.

Third, how is Microsoft feeling? Is this a great deal for them...or confirmation that they're screwed?

So Google investors are smart to be worried.

Yes, there's a chance that Google could pull off a miracle here and transform the Motorola Mobility business into a direct competitor of Apple's--in which Google gets not only Android distribution, but super-fat iPhone-like profit margins to boot.

But doing that will be super-challenging. Motorola's current hardware team has displayed none of the magic that Apple's has. And the more Google tries to mimic that magic, the more Google's other Android partners will likely rebel against Google's competitive threat.

Far more likely, Google will just continue Motorola's mediocre also-ran status in the handset business, thus adding a big, crappy commodity hardware business to its glorious monopoly software business in search. And that won't make investors happy.

Bottom line, a bold move by Google. But one that raises a lot more questions and challenges than answers.
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