MOUNTAIN VIEW, CA and LIBERTYVILLE, IL – Google Inc. is buying Motorola Mobility Holdings for US$12.5 billion in cash.
The software and search engine giant said Monday that the deal, (which also includes Motorola’s cable set top box and broadband divisions, portions that have not been widely considered as analysts deconstruct the deal), will enable Google to “supercharge” the Android ecosystem and boost competition in mobile computing.
It will also give Google control of some 17,000 patents Motorola owns, as well as 7,000 more patent applications in the pipeline. With wireless operating system companies suing each other back and forth for patent infringement (Android has been a big target), this will give Google some defensive ability.
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies”, said Google CEO Larry Page, in the announcement. “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.”
Motorola Mobility, which was spun off from the rest of Motorola in January, uses Google’s Android operating system exclusively across all of its smartphone devices. Google said that it will run Motorola Mobility as a separate business, and that the Android platform will remain open.
“This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world”, said Motorola Mobility CEO Sanjay Jha. “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.”
The transaction has already been unanimously approved by the boards of directors of both companies, and remains subject to customary closing conditions including regulatory approvals in the U.S. and the European Union, plus the approval of Motorola Mobility’s stockholders. It is expected to close by the end of 2011 or early 2012.
