Google to Buy Motorola Mobility for $12.5 Billion

Google to Buy Motorola Mobility for $12.5 Billion

Boom! Who would have expected this is going to happen, huh? But yeah, Google will acquire the mobile devices division of Motorola Inc.

Google’s acquisition of Motorola Mobility Holdings, Inc. is priced at $12.5 billion and is expected to close in late 2011 or early 2012.

In a blog post, Google said that the acquisition will not change its commitment to run Android as an open platform and Motorola will remain a licensee of Android while the software will remain open. Still, Motorola will run as a separate business of Google.

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.”

Larry Page added that the combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. Motorola owns thousands of patents and needless to say, this acquisition will also strengthen Google’s patent portfolio to combat against companies like Apple and Microsoft who are banding together in anti-competitive patent attacks on Android.

Motorola is very popular in the US for making Android smartphones like Droid, Droid X, Droid 2, as well the first Honeycomb tablet, Motorola Xoom. Majority of these handsets though didn’t make a landfall here in the Philippines.

Now the big question is what will happen to other phone manufacturers using Android then? Because in my own humble opinion, companies like LG, Samsung, HTC, Sony Ericsson, and among others – are actually competing in handsets’ hardware since all of them are using the same software. Isn’t it hard to compete a company which has full control of the software you’re using and is about to design its own hardware? Well, let’s just see how everything goes with Google’s “Android partners” after this acquisition. [via]

Click to Read Press Release

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Bert Padilla

Founding-Editor of Cebu Tech Blogger where he shares insights in eCommerce, Digital Marketing, Ad Ops, Tech, Startups, Technopreneurship, Life Goals and Hacks. He's the brainchild and ninja of a Cebu-based digital agency, TekWorx.Digital, with ventures TekWorx, (eCommerce and Digital Marketing), AdWorx (Outsourced Ad Ops for Publishers) and BlogWorx (full-fledged Blog Development service). Read his Full Curriculum Vitae. For training and consultancy, services, speaking engagements, blog partnerships or media invites, click here. Alternatively, get in touch with him on Messenger.

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