Very interesting news, especially given Motorola’s recent sabre rattling about going after patent victims^W income – hopefully this will put the end to that nonsense.
MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. – Aug. 15, 2011 – 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.
I hope with Google in control we’ll see some better Android devices out there – can we get a real keyboard please ?!?
It appears that patents are part of the reason for Google buying Motorola, but looks like they’re being trailed as defensive according to this TechCrunch article:
During todayâ€™s conference call explaining the deal, Page noted that Motorolaâ€™s â€œstrong patent portfolioâ€ will help Google defend Android against â€œMicrosoft, Apple, and other companies.â€ The first two questions on the call went right to the patent issue as well. With Android under attack on the patent front by Apple, Microsoft, Oracle and others, buying Motorola is very much a defensive move as well.