Google Purchases Motorola Mobility To ‘Supercharge’ Android

Google has announced the acquisition of Motorola Mobility
for $12.5 billion in a move it says will “supercharge the Android ecosystem.”

The purchase has been unanimously approved by both boards
and Google will pay Motorola shareholders $40 a share, which represents a 63
per cent premium over the closing share price on Friday last, 12 August.

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.”

Motorola Atrix

Motorola was a founding member of the Open Handset Alliance which
helped launch Android as an open platform in 2007. In 2008 Motorola took the
decision to move all its smartphones to the Android platform.

In a bid to ease the worry of other manufacturers regarding
the deal with Motorola, Page said nothing will change in terms of its relationship with other
smartphone vendors: “This acquisition will not change our commitment to run
Android as an open platform. Motorola will remain a licensee of Android and
Android will remain open. We will run Motorola as a separate business.”

In what will be seen by many as an unexpected move, Google’s purchase of Motorola
Mobility is partly an attempt by the company to stave off imminent challenges from Microsoft and Apple over the Android operating system: “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,” Page added.

Motorola Defy

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.”

The transaction is subject to the usual conditions and
regulatory approval and is expected to close by the end of 2011 or early 2012.

Source: Official Google Blog

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