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Google Buys Motorola Mobility For $12.5 Billion

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bbyybb

CGI bullshit is the death knell of cinema
Google just announced that it is acquiring Motorola. The search and online advertising company is buying the company for approximately $12.5 billion (or $40 per share), in cash.

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–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.

http://techcrunch.com/2011/08/15/breaking-google-buys-motorola-for-12-5-billion/

Pretty big news.

I guess Google really needs some patents.

How broad is Motorola's patent portfolio anyway?



Update 2012-05-22: Google completes acquisition of Motorola Mobility, CEO Sanjay Jha replaced by Dennis Woodside

Completing a nine-month journey through regulatory approvals on multiple continents, Google has closed its acquisition of Motorola Mobility today. The move comes just days after Google cleared the last major hurdle — approval in China, where Motorola has had a particularly strong presence for many years — and means that the Chicago-area phone maker will stop trading on the New York Stock Exchange effective immediately.

As reported in February, CEO Sanjay Jha has stepped down and will be replaced by Google's Dennis Woodside. "One of his first jobs at Google was to put on his backpack and build our businesses across the Middle East, Africa, Eastern Europe and Russia," Google chief Larry Page notes, though he's most recently been in charge of growing revenue as president of the company's Americas region. Woodside is bringing a bunch of outsiders into the business as part of the leadership transition: Regina Dugan, former DARPA director, Mark Randall of Amazon and Nokia, Google's former VP of consumer marketing Gary Briggs, and Scott Sullivan — with stints at Visa and Nvidia under his belt — are all joining the business.

Motorola's ultimate fate remains unclear. Amidst rumors of major layoffs, we still don't know whether Google really intends to get into the notoriously brutal handset hardware business — and if it does, whether it'll run Moto "at arm's length" as it has suggested in the past. Stories as recently as last month had pegged Google talking to Chinese giant Huawei about selling off the handset division, evidence that the acquisition was purely a play to beef up Android's patent portfolio.

Regardless of what happens, it's worth noting that this doesn't entirely end Motorola's run as an independent company: Motorola Solutions, the other half of last year's corporate split, soldiers on as a maker of industrial devices and network infrastructure equipment.

http://www.theverge.com/2012/5/22/3036049/google-completes-acquisition-of-motorola-mobility

Larry Page has also posted an official post on the acquisition.

The phones in our pockets have become supercomputers that are changing the way we live. It’s now possible to do things we used to think were magic, or only possible on Star Trek--like get directions right from where we are standing; watch a video on YouTube; or take a picture and share the moment instantly with friends.

It’s why I’m excited to announce today that our Motorola Mobility deal has closed. Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone. We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google.

More at the link http://googleblog.blogspot.com.au/2012/05/weve-acquired-motorola-mobility.html
 
Why? Do people still buy Motorola phones? Isn't their mobile division as dead outside the US as Nokia is outside.. well, pretty much everywhere?
 
HolyCheck said:
I like how you being on the cutting edge of news coincides with moletrap casting.

I had to look at sometimes else while Moletrap was droning on.
 
Bribing washington to get them to end the patent trolling business must be really expensive.
 
Good bye Motorola, Hello Googlerola! Sounds like a bigger push on phone markets. I am eager to know what plans they have for them.
 
Motorola has a ton of patents, being big in the early days of cell phones. They haven't been making money forever though, since the double punch of Nokia, RIM, and Apple.

Google Blog:
Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.
 
Combichristoffersen said:
Why? Do people still buy Motorola phones? Aren't their mobile division as dead outside the US as Nokia is outside.. well, pretty much everywhere?
Well, I know tons of people at work who bought Motorola phones. And I own one. Only other phones worth having are Samsung.
 
is google going to put android stuff exclusively on motorala phones? 12bil is a serious investment

i dont know how these things work help me out here
 
duuude.jpg

I like it. Motorola bet the farm on Google's OS, and it saved them from certain doom. This is just the next step in their relationship, I guess.
effingvic said:
is google going to put android stuff exclusively on motorala phones? 12bil is a serious investment

i dont know how these things work help me out here
No, of course not. Android is open source and lots of manufacturers are doing quite well selling Android phones. This just turns Motorola into a bona fide "first party" for the OS, and I can see how Google and Moto both stand to gain from this.
 
the real news to me is that motorola is actually called MOTOROLA MOBILITY. awesome.

i wonder what google will get out of this that they didn't already get out of motorola pretty much pinning their flag to android in the first place. those are some expensive patent rights.
 
DonMigs85 said:
Wonder what this means for Android? Greater hardware/software synergy?
This is what I'm thinking. If they can pull an Apple and be in control of the whole production pipe from designs to hardware to OS software, then that's a good thing for Android users. Gonna finally have some smooth phones.
 
Orayn said:
duuude.jpg

I like it. Motorola bet the farm on Google's OS, and it saved them from certain doom. This is just the next step in their relationship, I guess.
It didn't save them from certain doom. They've not had a profit in a long time.
 
Google didn't buy Motorola for the cellphone. They bought it for the Patents
they want APPLE's BLOOD.

Microsoft will continue not caring about phones with their crappy zune that's getting trashed eventually.

Sony will continue advertising their phones and see better success than Microsoft

Apple only has to fear Google at this point, while being wary of Sony.

Nintendo?

reggie_i_dunno.jpg


they refuse to get with the times.
 
seems like google just spent 12 billion for patents basically.

i hope this increases the war between apple and google, its entertaining and means better phones.
 
Google Blog:
http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html

We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

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. I am confident that these great experiences will create huge value for shareholders.
4ODaJ.jpg

Motorola's had negative profit for a loooooong time. This is about the patents, but they will probably keep the phone business going for awhile.

345triangle--Motorola spunoff their phone division and called it Motorola Mobility. Motorola itself still exists.
 
Rur0ni said:
Well, I know tons of people at work who bought Motorola phones. And I own one. Only other phones worth having are Samsung.

Honestly, I don't think I've met anyone with a Motorola phone since I was in secondary school 13 years ago (my first phone was a Motorola, and it was built as a tank). And even back then it was all about Nokia, before Sony Ericsson took over, and nowadays it's Sony Ericsson, Apple, HTC and Samsung (although SE seems to have fallen somewhat by the wayside as of late).
 
Didn't see that coming. Was there any hints of this before?

Motorola has a shit ton of patents as already exclaimed. Going to need to have a chat with my dad about this. He worked at the main division in Schaumburg, IL for 18 years.
 
Combichristoffersen said:
Honestly, I don't think I've met anyone with a Motorola phone since I was in secondary school 13 years ago (my first phone was a Motorola, and it was built as a tank). And even back then it was all about Nokia, before Sony Ericsson took over, and nowadays it's Sony Ericsson, Apple, HTC and Samsung (although SE seems to have fallen somewhat by the wayside as of late).
Yup.

Never seen Motorola as popular. It was a Nokia and a bit of Samsung and now it's iPhone and Android for the most part.
 
I guess Motorola being mostly on Verizon means more CDMA phones? Plus Andriod becoming updated more on Motorola compared to other companies ie. Samsung, Pantech, HTC, etc.
 
numble said:
It didn't save them from certain doom. They've not had a profit in a long time.
That may be a bit of an exaggeration on my part, but Moto's still in a better place now than they were pre-Android. My dad was in cell phone software development in 2008, looking for new models from various manufacturers, and his team steered clear of Motorola because they were preparing to stop new development on just about everything they sold in the mobile arena. The Droid changed that in a pretty big way, and Motorola has been up there with HTC and Samsung as reigning lords of Anroid-land ever since.
 
killer_clank said:
oh wow.

i for one welcome the continuing rise of google, our overlords.

It still amaze me how most people in the 90s considered Microsoft a big danger because they had their OS on most PCs, while now Google controls most of information (web search, digital books), "scanned" the whole planet, try to take control of mobile communication, social networking, virtual OS etc... and it's cool because they're "the good guys".
 
Orayn said:
No, of course not. Android is open source and lots of manufacturers are doing quite well selling Android phones. This just turns Motorola into a bona fide "first party" for the OS, and I can see how Google and Moto both stand to gain from this.

ah fair enough.

i love the patent feud between these giant corporations. this should translate into some awesome products down the road
 
Nero3000 said:
No more motoblur?

Please?
This was my first thought as well... I want vanilla Android on my Atrix!

But this is big news, Google's looking to take the fight to Apple.
 
Motorola made smartphones ?

I think the last phone I remember from them was the "RAZR" or something like that.
 
For some reason I was certain this was a joke thread. I am confused by this move.

Kafel said:
Motorola made smartphones ?

I think the last phone I remember from them was the "RAZR" or something like that.

Umm Droid.
 
Google: "Oh we bought a mobile phone company too? Guess that's nice".
 
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