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