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Google to Acquire Motorola Mobility Enabling Android to “Break New Ground” (Updated)

Yep, you are reading that title correctly.  Google is acquiring Motorola Mobility for $12.5 billion in a move that was clearly made because of  Moto’s massive patent portfolio.  Both boards unanimously approved the decision – Google now looks to “supercharge” the Android operating system and enhance competition in the mobile space.  

Notes from conference all:

Update 1:  Most of the questions from media and investors on the call clearly has to do with patents and licensing – something Google or Motorola won’t give many details about, but you can tell that they are very pleased with this partnership.  Moto’s some 17,000 patents greatly strengthens and helps protect Andr0id.

Update 2:  And just so you know, both Larry Page and Andy Rubin have already said multiple times that Android remains open.  Rubin spoke with the top 5 manufacturers yesterday and made it very clear to all of them that nothing has changed.  Motorola will operate as its own company and Android will remain open to use as it has been.  The idea here is that it gives Google a chance to “supercharge” the OS.

Update 3:  You can view Larry Page’s comments on the acquisition here.

Update 4:  Andy Rubin still expects the Nexus series to be a competition between manufacturers.  Just because they own Motorola now, doesn’t mean that every new Nexus device will be from Moto.  They will have to compete along with HTC, Samsung, LG, etc. to put together a phone that Google would be proud to brand as a Nexus.

Update 5:  Call is over, Larry seems more-than-thrilled.  As are we, Larry.

Definitely developing…

Google to Acquire Motorola Mobility

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

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. – Aug. 15, 2011 – 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.

The acquisition of Motorola Mobility, a dedicated Android partner, 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.

Larry Page, CEO of Google, said, “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.”

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 subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012

Webcast Information

Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live athttp://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.

About Motorola Mobility
Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.

  • Anonymous

    i wish this meant that that all moto handsets will get unlocked.

  • Deejay

    Holy ***** ***** ************* ****** ******* *******

  • Djstar2k2

    nice super +1

  • http://twitter.com/trophynuts trophynuts

    i am speechless at how excited i am to hear this…i can’t wait to get on twitter and see what P3 has to say about it. 

  • http://www.facebook.com/people/Nicholas-Day/100001310977448 Nicholas Day

    Joyful laughing has commenced.

  • http://twitter.com/zer0cool96 Nick Daddona

    well im just gonna put this here because im not reading all 210+ comments…

    i think this is all about the “android @ home” movement. and android open handset alliance… or something like that(?) now they have a legitimate hardware company to work with

  • http://www.blogdeculturismo.com/ Culturismo

    I Can’t care less about the hardware division of Motorola Mobility. This is all about patents. Motorola has been in wireless for 80+ years. Plus, they are being sued by Microsoft over something related to mobile.

    I have 3 words for Google: FIGHT! FIGHT! FIGHT!

    I hope this move does not burn bridges with the other Android hardware vendors.

    What happens next? Microsoft buys Nokia?

  • Robert Santiago

    I’m so excited by this news my pants got tighter.   :-D

  • Zeadaplaya

    Its awesome they’ve bought Moto Mobility both for Android OS AND how Moto implements it into there products but it also shows how sad the US Patent System is.

  • James_Ever

    I just hope it means that updates to software/fixing bugs will be ready and approved quicker than Motorola devices currently are.

  • Elliott

    I like this because of 1 main reason….Now with apple going after Moto because of the Xoom now apple will be in a direct fight with Google. With Google’s and Moto’s direct patents and assets, this may be the move to slow down or even stop the Apple litigation train.

  • Dan

    Perhaps this means the end of locked bootloaders as well.  

  • http://twitter.com/batfandotcom Ben Rollier

    So the Droid 4 will be straight Android?  Would be awesome :)

  • Anonymous

    BOOTLOADER!!!!

  • http://twitter.com/Rocko9999 Rocko Smith

    So will my Droid X get unadulterated 2.3.6?

  • http://www.facebook.com/profile.php?id=716789798 Lonnie Kerchief

    So I guess this means Verizon will stop carrying Motorola Android devices since they seem so stubborn about having an unlockable device on their network.

  • Stelv81

    Looks like Google is sick of Motorola ruining the Android platform.

  • Urugami

    I am so glad that heart attack didn’t kill me last month… just so I can see this come to fruition. ;)  (after it’s done, though, I gotta watch out)

  • Anonymous

    So Moto will finally get a Nexus phone?

  • Anonymous

    Pinky: Gee, Brain, what do you want to do tonight?Brain: The same thing we do every night, Pinky – try to take over the world!

  • The350zWolf

    The next Nexus phone will be Moto! ;^)  Hello Moto!

  • The350zWolf

    This is great news, now the most software engineers can devote themselves to do that develop awesome software (android) and awesome hardware engineers can devote themselves EXCLUSIVELY to develop the most awesome phone hardware available. Yes Win-Win!

  • Anonymous

    Skynet now has its Droids.  The end is near.

  • palomosan

    I think they should cancel the Bionic and make Vanilla Android to celebrate.

  • Anonymous

    This begins a new chapter in the story that is Android..Moto+Google=dominance