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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.

  • http://iamandroid.co/profile/rocktoonz Rocktoonz

    This is one hell of a shock to start the week.  I, too, wonder if this will mean the end of Blur, locked moto bootloaders, and Jha.  Maybe another delay for the Bionic while Google de-blurs it?  LOL

  • Rizzidy

    Blur for everyone!  Now they can embed it in the android source code!

    j/k

  • http://twitter.com/gorkon Joel McLaughlin

    AND CRUSH THE CRAP THAT IS MOTOBLUR!  W00t!  I really like this merger!

    • Guest

      SHUT THE HELL UP THE NEW BLUR ITS ACTUALLY NICE IT LAGS A BIT BUT REMEMBER NOT OF THEM HAVE LTE DUAL CORE

      • http://www.facebook.com/profile.php?id=25001493 Hank Godwin

        If you can’t even sign in as a real person, GTFO.

        • James_Ever

          Thank you and its Nexus not Nesus…

  • Guest

    LIKE I SAID BEFORE JUST WAIT TILL MOTO DO SOMETHING SPECIAL AND ALL THE HATERS OF MOTO WILL BE KISSING ASS LOL STUPID TROLLERS . MOTO WINS AGAIN GOOGLE KEEP WINNING OUR HEARTS :) BRING IT ON NESUS MADE BY MOTO LOL

    • EC8CH

      ummm…

      Moto didn’t do anything special here except basically die mostly likely taking along with it Blur and their bootloader encryption.

    • FireSanjay

      Who invited Kanye?

  • michael scott

    Hopefully this means goodbye motoblur.

  • Anonymous

    I think we’re missing the real value to us, the death of DROID.

    This could be a game changer if Google has Moto put out Android phones that can function multi-carrier (all LTE bands) with no bloat built in as they don’t need the ad money.  That’s even more exciting than vanilla.  That will force the US carriers to compete harder as it’ll just require a sim card change to move on instead of a new phone.

    • Bullet Tooth Tony

      Droid was brilliant… but I agree, it’s served its purpose.  Samsung now has set the bar even higher, by doing one simple thing… creating a global brand in the Galaxy S name, and selling them like crazy.

      • Guest

        selling just one device lol

        • Bullet Tooth Tony

          Samsung sells more than 1 device… the difference is… they have a big brand name that sells more than any other Android device.  Selling the same brand named phone on every carrier it comes to it a huge advantage…

    • Guest

      I do agree with you these people always crying about vanilla this and vanilla that the new blur is nice and i want them to enhance it not to get rid of it and that will be sweet it will make verizon a hard time if they do that imagine the bionic on sprint with lte and the sprint plan :)

      • http://twitter.com/NemaCystX NemaCystX

        This is what I said to another commenter on Engadget about the different UI’s.

             Definitely unexpected, maybe they can get rid of blur and improve on the UI entirely.  Blur exists for a reason, just like Sense, and TouchWiz.  It sets the products apart beyond specs.  So I would not be surprised if they keep blur and improve on it now that they got Google to help with the OS and its UI.  I think this proves they will more than likely have one of the first ICS devices.

    • Anonymous

      Keep in mind, there have been numerous HTC and Samsung Droids as well.

      • Anonymous

        But these are done for the subsidized/joint marketing.  Others have put out one phone where for Moto it’s on every phone.  Verizon won’t put money behind (or DROID name on) a phone that can go to another carrier.  Yes HTC or Samsung could step up to provide dedicated Verizon DROID phones but I don’t think they want to.  They have shown they want to keep their own branding on their flagship phones.  So hopefully we see a future of Android phone capable of being multi-carrier.

      • Anonymous

        There has been exactly 1 Samsung Droid… The Charge… and it sucks.

        • Anonymous

          HEYHEYHEY. Don’t upset my baby. I should have stayed with my DX and waited it out. DAMMIT. I MISS MY DROID X :(:(:(:(

    • Anonymous

      Except, non of this is true.  It has already been stated that VZW and at&t LTE will be running on different bands (and most likely so will LightPeak), so that dream of just swapping out the SIM… still a dream.

      • Anonymous

        You are aware that multi-band phones exist now for 3G.  Even Verizon offers international Android phones with multi-bands.  It’s a matter of time and money before they exist for 4G.

        • Anonymous

          Yup, I am aware of such things.  BUT, with VZW making it clear that “right now” there won’t be phones that can handle both, you can be fairly certain that the number of phones that will be able to do this will be SEVERELY limited, and most likely not coming from any vendor that actually does business with VZW. (In other words, if they want to sell their subsidized handsets through VZW, they will agree NOT to make such a phone).

          Will it come?  Probably at some point… but for now, it is still “wishful thinking”

          • Anonymous

            If Apple can force it onto Verizon I can’t see Google not being able to do it.  However even if they don’t its not a big deal.  As long as it runs on those bands you can buy it direct from Moto/Google and buy a sim from Verizon. Problem solved.  With the purchase of the LTE spectrum the clauses for competition by the FCC were put in for such scenarios.

            I agree it isn’t something happening this year, maybe not next but it’s good to see the possibility of change on the horizon.  Especially since no OEM currently is trying to stand up to the carriers.

  • Jonathan Carnesciali

    im so haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaappppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeehhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • EC8CH

    Hey Apple and Microsoft…

    This is called and end around.

    Basically it means F*ck you and all your D*cksh*t collusion to keep android down.  

    • Anonymous

      Seriously. A big 12.5 billion dollar F*ck you.

  • Jay City

    Blur is like the “house arrest” of motorola android devices.

  • http://pulse.yahoo.com/_SRARBD3SUONIDIVWFP5UNW4QLU Deborah Clemons

    I just paìd $22.85 for an ìPad 2-64GB and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.78 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $625 which only cost me $62.81 to buy. Here is the website we use to get it all from, CentHub.còm

  • Anonymous

    Can you expand on the supercharging of the OS.

    • Anonymous

      Google’s way of saying Moto devices will have a better android experience and also be optimized for it. There’s no possible way Moto’s phones shouldn’t and wouldn’t be better than everyone else’s now.

      • Guest

        it is still better even with the new blur and lock bootloader imagine now :)

        • http://www.facebook.com/profile.php?id=25001493 Hank Godwin

          Eh…no.

  • Anonymous

    Now if only Google bought T-Mobile. What could have been.

    • EC8CH

      Great phones running a great OS with no signal?

      • Anonymous

        It would be better if it was them then AT&T. Plus you could guaranty that Google would strengthen its infrastructure before expanding it So then you’d have great phones, a great OS & and in little time a great network.   

  • Anonymous

    bullshit on the whole “Nexus won’t necessarily be a moto device” talk… that’s just Google saying the right things today when they have no intention of doing that.

    • Guest

      i do agree but they know next nesus it will be made by moto hardware baby :)

  • Anonymous

    Next Nexus… a Motorola? Awesome, couldn’t be happier!

    • Guest

      should we get bionic stock or nesus prime stock we have options now i do love my new blur i hope they put the best software now

      • James_Ever

        Why do you keep writing nesus its nexus, Nexus, NEXUS!!!

  • Schoat333

    The droid nexus by motorla…. Sounds awsome!

    • Guest

      that will be the name for it just wait and see

  • Rizzidy

    It will be interesting to see how HTC and Samsung react to now having a vertically integrated competitor.

    • Jay City

      Samsung will probably make their phone paper thin…and HTC…….will probably make their batteries worse…lol…

    • EC8CH

      what are they gonna do?  Sell WinMo7 have fun with that :-P

      • Anonymous

        HTC is already selling WinPhone7, so they already know what a losing proposition that is.

        Samsung could take a shot at it though.  With their oversaturated screens, perhaps people won’t notice the cheap plastic phones are running WP7.  Seemed to work with the Galaxy S line.

  • RW-1

    If Larry were smart it would contain a Jha removal clause, I’m sure the dev comunity would pay to get him outta there…

    I think it’s a patent protection thing, moto will keep running, hopefully though Larry can pressure to unlock them even harder.

  • Lakerzz

    Another Droid Bionic delay will be WELL worth it if it were to have stock Android on it, but I am still half asleep so I’m probably dreaming. :[

    • Guest

      COME OUT FROM THAT DREAM BECAUSE IT WILL HAPPEN IF NOT THE DINARA OR NESUS PRIME :)

  • Jason Laurence

    My DX just froze with excitement….oh wait, it normally does that

  • T1392

    Hopefully Google takes peices of Motoblur & applies them to stock Such as the widgets & cool 3d like effects of the D3 if they can fix the little lag. Also maybe if Motorola makes Nexus Prime we can get a laptop dock but this time with Google Chrome. Hopefully unlocked bootloaders for all.

    • Guest

      THAT IS WHAT IS GOING TO HAPPEN MOTO WANTS TO BRING PEOPLE
      TOGETHER BY CONECTING THEM WITH SOCIAL NETWORKING AND WIDGETS GOOGLE WILL MAKE
      IT BETTER WITH ANOTHER NAME BUT WE WILL STILL HAVE THE AWESONESS FROM BOTH
      PARTIES MOTO AND GOOGLE

  • fartbubbler

    wow.

  • http://twitter.com/djduquet Duquet

    I just heard this on NPR at work and did a total double take. 

    Cool.  Can’t wait to see what’s going to happen. 

  • Nevelos85

    wow didnt see this coming, may i please have a nexus droid on verizon pleasssee

    • Guest

      SHUT UP YOU ARE ANOTHER TROLLER FROM BEFORE LOL I TOLD ALL OF YOU THAT MOTO ONCE AGAIN WAS GOING TO WIN

  • BULL3T

    Can anyone say a stock unlocked motorola android device?

    • http://twitter.com/Cory_OBrien1029 Cory O’Brien

      There has already been one of those.  It is the favorite of most on this forum.  The innovator AKA the OG Droid.

      • Guest

        I FEEL DROID ONE REVOLUTIOZED ANDROID BUT IT IS NOT THE BEST ANDROID PHONE THE BEST ANDROID STILL DROID X BEFORE THE DROIDX2 CAME OUT

      • Anonymous

        AND THE PHOTON :) AND THE ATRIX :) AND KIND OF THE DX,D2,D2G,DX2 and whatever else 2nd-init gets on. But the atrix and photon are fully unlocked

      • BULL3T

        ya i know i own one and its still my everyday phone. my faithful og. but there hasnt been one on verizon since, thats why i said it

  • Anonymous

    This is nothing compared to HTC and Dre.

    • Anonymous

      Moto is trying to steal their Thunder(bolt). ;)

    • EC8CH

      lol

  • Sean

    i wooooooooooonder if THIS is why the bionic was pushed back for so long…

    • Guest

      MAYBE :) MOTO GOT SERIOUS MAN LOVING IT WHERE ARE THE TROLLERS FROM THIS FORUM THEY ARE HIDING LIKE RABBITS

  • Ravenlore

    It would make me happy to get stock Gingerbread on my Droid 3. *crosses fingers*

    • James_Ever

      Removal of bloatware would be enough for me and my Droid3.

  • Anonymous

    Haha, I was just gonna email you about this story.
    Hope this means Motorola will again make a vanilla android phone like the one that started all this.

    • Guest

      what was so special about vanilla android? did it have social networking?

      • Anonymous

        No but it left your battery with more juice and it didnt lag the phone down like a hippo on a bicycle

      • Anonymous

        The Motorola Droid didn’t come with any Blur skin overlay.  I did have FB and Twitter on my OG Droid.  Now I have the DX, while I am very happy with the DX, I’m not happy with all the bloatware that came with Blur.  That’s one of the difference’s between “vanilla” Android and what is now being put onto phones.  Take a look at all the comments on this blog post.  A lot of them have to do with getting rid of Blur.  

  • RW-1

    Now, can Jha, and unlock those glorious pieces of hardware.

    In My only thought is while Google chose to grab it, being they do make great hardware (it’s just they delay it until it is no longer “Groundbreaking” at release time) now you have Google in direct competition withother manufacturers (HTC, Samsung).

    I suppose we’ll have to see how the deal is actually arrainged, Google managed, or overseeing it, and nothing changes other than they now have more pull to approve/dissaprove items moto places on the units.

  • Anonymous

    Hell f-ing yes!!!!!!

  • http://www.facebook.com/profile.php?id=1435680060 Mirnal Chaudhary

    Does this mean we’ll now get software updates when they actually come out? Because that would be fantastic

    • John

      no.

    • Anonymous

      Maybe.

    • Guest

      YEA WE WILL HAVE BEST SOFTWARE AND BEST HARDWARE AS WELL THANK YOU MOTO AND GOOGLE :) BEST COMBINATION EVER

  • Anonymous

    This is all about to get very interesting!

  • Anonymous

    12.5 billion for Motos patents…thats the real reason.

    • Anonymous

      More than that, but it is obviously part of the plan.

      • Anonymous

        Agreed, if it was just for patents they would have bid seriously on the other portfolios that MS and Apple bid on that cost a lot less.  There’s definitely more to it.

        • http://twitter.com/binglut9 Brian

          well its more because they bought the company too its just not the patents

    • Guest

      moto sells the most

  • Jpjamiso

    Vanilla dx3?

    • Guest

      YOU GOT THAT RIGHT MY BROTHER BUT WHY NO BLUR THE NEW BLUR ITS NICE

  • Craig

    Goodbye MOTOBLUR. You will not be missed.

    • http://asten77.myopenid.com/ Asten

      The latest blur is actually quite nice.  Not the cartoony, useless junk from before. 

      • Anonymous

        You can say it, and say it, and say it… they aren’t listening anyway.  You are right… but Blur bashers are going to continue to trash it… true or not.

        • http://twitter.com/binglut9 Brian

          Yea because they have probably never used it and are in love with the sense UI

  • B Diggs82

    The nexus prime will be a Motorola device? That would be amazing

  • B Diggs82

    The nexus prime will be a Motorola device? That would be amazing

  • Manueljcoronado

    Just seen on the news..crazy

  • http://www.facebook.com/people/Kevin-Sosa/635420640 Kevin Sosa

    I guess this makes sense.  The only company left to buy would have been HTC, and they’re relatively profitable. Moto has been leaking $$$ which lead to their split in the first place.  Now to see what Google does with this.

  • RW-1

    Approved and signed, it’s a done deal.

  • http://twitter.com/daniel_ohh Daniel Ogilvie

    It’s the end of Blur as we know it.  And I feel fine.

    • Ravenlore

      Epic win. Both for the end of Blur and for the REM reference.

    • Anonymous

      I can’t +1 this enough. You’re awesome.

      • Anonymous

        turee

        • Anonymous

          CAN WE GET A FLIPPING WAY TO VOTE DOWN POSTS LIKE THIS?!?!?!?!?!?!?!?!?!?!?

    • Anonymous

      I wonder if those Blur engineers will now be working on Google’s core platform…

      • Rizzidy

        *shudder*

      • Anonymous

        I know it’s a tough economy right now, but honestly, anyone that was working on Blur shouldn’t have a job anywhere near technology.

        • Anonymous

          When you think about the rigorous interview process Google has for its software people, you really have to wonder if Moto’s software people have a future in the company.

          • Anonymous

            You honestly believe all those engineers are idiots because you don’t like the UI?

          • Stelv81

            No they are idiots because they create flawed software. It’s not a matter of preference. Its a matter of teh Blur software overlay not working correctly.

        • Anonymous

          I know it’s a bit weird but you probably haven’t read the source for AOSP. Honestly, some parts are as scary as Blur.

          I wouldn’t say that Motorola’s programmers are the sole target for blame.

    • Anonymous

      No supercharged phones with blur :)

    • Anonymous

      MMI stays a separate business which means Blur isn’t going anywhere.

      • Anonymous

        Don’t be so sure. “‘Supercharge’ the OS” is a fancy way of saying “FIX YER SH*T MOTO”.

        • Anonymous

          Motorola needs something that makes its phones look “different”. That something is Blur. Why would they go vanilla AOSP when they are staying a separate business that has to compete with others?

          • Anonymous

            “Different” is not supposed to be synonymous with “bad.” That’s the mistake that Motorola has been making with Android since the Devour.

          • Anonymous

            Going vanilla WOULD be different. No OEM is putting out high-quality stock devices except the nexus series, which is now a generation behind in both wireless technology and processor speed.

            I don’t expect anything to change in the short term, but in the mid-to-long term, I would expect the good parts of blur to be pulled into Android proper and optimized, and the rest of it to get discarded.

          • Gordol

            But which parts will “they” consider good vs bad?

          • http://twitter.com/gorkon Joel McLaughlin

            When EVERYONE else is putting out their own interface, Moto going to vanilla AOSP WOULD be new.  WOULD be different.  WOULD make Moto EXTREMELY attractive to people like us.

          • http://twitter.com/gorkon Joel McLaughlin

            When EVERYONE else is putting out their own interface, Moto going to vanilla AOSP WOULD be new.  WOULD be different.  WOULD make Moto EXTREMELY attractive to people like us.

          • Jeff

            Just giv ethe ability to turn it on or (COMPLETELY) off….  That is all I ask….

      • Anonymous

        No company buys another to do nothing with it.  It just doesn’t happen.  I’m not going to make a bet on Blur’s future, but that’s standard response to try and ease shareholder, employee and partner anxiety.

    • Anonymous

      And in the back round Jha is playing “everybody hurts”

    • EC8CH

      This is more about keeping android alive than killing Blur… But I like your enthusiasm for vanilla Andy!

    • Anonymous

      Somebody give this guy a plaque or a trophy that says “most epic comment of the year”

    • palomosan

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

    • Rob Meyer

      150 likes = epic win..lol

  • Anonymous

    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.

  • Anonymous

    I just got an email from Moto Mobility that confirmed…

  • Anonymous

    It sounds like it could be the best thing ever. Here’s to hoping it turns out that way!

  • Anonymous

    I hope they don’t get rid of Blur!!!

    • Anonymous

      you forgot the “/s”

    • Guest

      me either i want them to enhance it make it the best software ever

  • Anonymous

    this could be priceless

  • http://twitter.com/Justinwrites Justin True Anderson

    awesome

  • Anonymous

    Soooo next Nexus is Moto made….

    Let’s hope this spells the end of locked bootloaders and blur.

    • Anonymous

      lol, extremely wishful thinking (on the locked bootloader)

      • Anonymous

        Maybe Nexus 4 since this won’t be final until end of year or early next.

        Edit: @zepfloyd

      • John

        ya. it’ll continue to happen but still nice to have dreams

    • Anonymous

      It’s been stated that releasing anything Nexus will always be a competition.

    • Gordol

      Didn’t the article say that Google will still make Nexus a competition and Moto will still have to compete for it?

  • Anonymous

    Did anyone see this coming? I sure didn’t…

    • http://twitter.com/Justinwrites Justin True Anderson

      nope.  stunned.

  • Anonymous

    WOW. Speechless. 

    • fartbubbler

      sh!t just got real.