Google has announced that it is buying Motorola Mobility - the handset division of the former Motorola giant - for around US$12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares last Friday.Google announced on Monday morning that it will acquire Motorola Mobility for $12.5 billion.
Google has stunned those watching the mobile space with the announcement today that it has purchased Motorola Mobility for $12.5 billion in cash. Motorola was early onto the Android platform and has gone all in with it over other alternatives. Motorola CEO Sanjay Jha recently indicated that the company might be looking to bring its patent portfolio to go after other Android device makers; those companies should be breathing a little easier now that Google owns those patents.
CEO Larry Page writes that Google has acquired Motorola not only because of its strength in Android smartphones and devices, but also for being a market leader in the home devices and video solutions business. This 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.Motorola Mobility is what used to be the Mobile Devices division of Motorola until January 2011. A few years ago, Motorola bet its future in the mobile devices market by going full Android, launching the Droid initially on the Verizon network on November 6, 2009. The Droid X and Droid 2 followed in 2010.