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