Google announced early on Monday morning that it will acquire Motorola Mobility Holdings, for around $40 per share or $12.5 Billion Dollars “a premium of 63% to the closing price of shares on Friday, August 12, 2011,”
According to CNN.com “it would be Google’s largest-ever acquisition. It’s previous largest deal was for online ad company DoubleClick ($3.1 billion), followed by the 2006 purchase of YouTube ($1.65 billion). Google also was part of an investor group that purchased a 22% stake in Clearwire for $3.2 billion in late 2008. As of last check, Google had around $39.1 billion in cash on hand”.
According to Google’s blog, “more than 150 million Android devices have been activated worldwide, with over 550,000 devices now lit up every day”
In addition to the getting the phone manufacturer Google is getting 24,000 patents held by Motorola which some would argue might be the most valuable part of the acquisition.
For me it’s an interesting move by Google with an Anti-trust action by the US against the company already gearing up.
“This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world,” Motorola Mobility CEO Sanjay Jha said in a statement.
“Our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community,” Android head honcho Andy Rubin said in a statement. “We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”
Here is the full Press Release:
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.
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.”
Andy Rubin, Senior Vice President of Mobile at Google, said, “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.
unbelievable!
but I doubt this deal may ever be allowed by antitrust authorities
The giant is getting bigger day by day.Maybe one day Google will take over Yahoo and Bing.The real battle of business is now fight in the cyberspace!
This is a natural course of vertical growth.Since Google Android is “blocked” by some of it competitors,it will have to acquire a mobile company to by default install the platform into it.Exactly like how Microsoft inbuilt it “Windows” software into almost all the computers these days. Smart ass!
“Maybe one day Google will take over Yahoo and Bing.”
yes, it’s what I’ve alredy predicted, over two year ago …
newgoos.blogspot.com/2009/05/why-bing-will-be-sold-for-1-in-2012.html
“Maybe one day Google will take over Yahoo and Bing.”
yes, it’s what I’ve alredy predicted over two year ago …
newgoos . blogspot . com/2009/05/why-bing-will-be-sold-for-1-in-2012 . html
this monster will devour everything and make anyone slaves to their monopoly
“this monster will devour everything and make anyone slaves to their monopoly”
it’s what I say everywhere from over four years, but no one believes in my warning about Google
I hope more and more people will being aware of the big risks for the web and the democracy of a planetary Google monopoly, before will be too late!
Why didn’t google try to acquire qualcomm?
“Why didn’t google try to acquire qualcomm?”
because it hasn’t a 17,000 patents potfolio like Motorola
anyhow, now Microsoft MUST quickly buy Nokia or HTC or RIM or … all them
“Why didn’t google try to acquire qualcomm?”
because it hasn’t a 17,000 patents potfolio like Motorola
updated news say that Motorola has 24,000 patents (not “only” 17,000) including the patent of THE cell phone!
the Google domination on the Planet Earth has begun! 😐
If anything, Google will use phone data to study user behavior, so it can advance mobile advertising on its inhouse network.
“it can advance mobile advertising”
no, Google may soon EAT over 90% of mobile advertising!
“some of the best domains here – JUST REGISTERED MOTOROGLE.COM !”
Wow… I was hoping that spam was a joke. Sadly, it’s not.
MOTOROGLEs.COM is probably still available
Motorogle dot co is still available if Robert Cline is looking for an investment………………………
Wouldn’t it be a ……weird………Twilight Zone moment……. if tomorrow we wake up and
read that Google is renaming Motorola………………Motorogle…………..doo do…doo do…doo do…doo do…doo do…doo do…doo do…doo do
motorogle.com is perfect for a site or blog that covers the new Google-owned Motorola’s products and news 🙂
Did you really turn down $80,000 for Together.tv?
Louise
Are you asking me that?
If so its not even my domain name
I did turn down $125K for d.TV
@MHB, Re: d.tv, I could develop that! I’m proud and thankful for you doing well enough to reject $125,000 and bring respectability to the industry.
No, Together.tv belongs to Motorogle.
This is why I could develop that: http://emergingdomains.com/mobile-dtv Mobile DTV is going to be big!
I retract what I said about Together.tv belonging to Motorogle. Together.tv belongs to the Big Cheese.