Google buys Motorola in $12.5 billion deal

Google to acquire Motorola Mobility in $12.5 billion deal

Google has announced that it is to acquire handset maker Motorola Mobility in a $12.5 billion deal.

The price, a 63 per cent premium to the value of Motorola Mobility at the end of last week, makes the deal the largest ever undertaken by the California-based company and was hailed by Google chief executive Larry Page as a “natural fit”.

Google said the acquisition of Motorola Mobility, a dedicated Android partner, would enable Google to supercharge the Android ecosystem and would enhance competition in mobile computing. Motorola Mobility would remain a licensee of Android, which would remain an open platform. Google would run Motorola Mobility as a separate business.

“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,” Page said.

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 expected to close by the end of 2011 or early 2012.

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