Breaking News: Google Buys Motorola Mobility For $12.5bn
Google has struck its biggest ever deal – to buy Motorola’s smartphone and tablet business for £7.7bn ($12.5bn) in cash.
Both companies say the move will give a “supercharge” to Google’s Android platform.
Android-based devices, which include Motorola’s smartphones and tablets – are the major rivals to Apple’s iPhone and iPad. As such, the acquisition appears to be a decisive effort by Google to tackle to dominance of Apple head on.
Under the deal, Google will buy Motorola Mobility for $40.00 per share, a price that is 63% over the closing value of Motorola Mobility shares on Friday.
Access to Motorola’s intellectual property appears to have been a major motivating factor behind Google’s purchase. Google chief executive Larry Page said Motorola had a “strong patent portfolio” along with an “exciting product roadmap” and a “strong vision for the future”.
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” said Mr Page. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”
Motorola is a company of two parts – a ‘Mobility’ arm, which makes phones and tablets, and a ‘Solutions’ division, which develops technology systems for industry.
Mr Page admitted Google did not have experience with manufacturing devices, and as such planned to run Motorola Mobility as a separate business.
Posted on August 15, 2011, in Entertainment, Mobile Advertising, Mobile Phones, Mobile TV, News, Technology, Television and tagged Android, Apple, Apple iPad 2, Apple iPhone 4, Google, Internet, iPad, iPhone, live mobile TV, Media consumption, Mobile Advertising, mobile devices, mobile internet, Mobile TV, Mobile Video Advertising, Motorola, Motorola Mobility, music streaming, Online, Smartphones, Tablets, Technology, Yamgo. Bookmark the permalink. 1 Comment.