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.