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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.

  • Turb0wned

    Guys moto will still be its own company. This doesnt mean Vanilla or end of blur. This was done to protect against apples sue everyone project.

  • http://qomosule.hopto.org/opium-production-afghanistan.html Tixiy-bob1961

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  • Anonymous

    Am I reading this correctly?  This is an important move for Google as well as Android as a whole.  Google said that they were prepared to deal with all of the patent lawsuits and now its time to fight FIRE WITH FIRE!!!

  • Anonymous

    HUGE!

  • http://twitter.com/MrBouche MrBouche

    This was the first piece of news I’ve read this morning! WOW!

  • nessa

    i hope google buys verizon wireless one day

    • http://twitter.com/binglut9 Brian

      More likely sprint…But this is good for verizon because motorola loves verizon and verizon loves motorola so hopefully we can get a pure experience one of these years

  • Anonymous

    tinyurl.com/2df4ccp

  • http://profiles.google.com/statsprofessor Jakub Palka

    Nexus Prime will have Blurr now :p

  • 84lsben

    that means sooner  or later i am going to betray HTC and get a moto product lol

  • http://twitter.com/strifejester Justin Ellenbecker

    UNLOCK MY BOOTLOADER NOW

  • http://twitter.com/NemaCystX NemaCystX

    I love this part of the article

    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.

    • Anonymous

      Yeah, imagine how proud they would be if their own company couldn’t produce the best phone for that competition.

      • http://twitter.com/NemaCystX NemaCystX

        This is pretty bad to have to read two different articles to get the whole story.

        Engadget has different info, and Droid Life has different info.  combine the two and you get the whole story, unless theres another site out there that skewed the info too?

  • http://www.facebook.com/tflournoy95 Thomas Flournoy

    ruin it? i would hope not… Linux ftw

  • http://www.facebook.com/tflournoy95 Thomas Flournoy

    “Motorola will operate as its own company” guys i think that means motorola might not unlock their bootloaders

  • Anonymous

    Google just bought Blur. Welcome to Androids new default UI!!!!!!!!!

  • http://www.facebook.com/profile.php?id=1390584652 David Steward

    So does this mean I should try to hold onto my OG Droid just a few more months? I don’t want to be stuck with a Bionic when the first Motogoogle phone comes out.

  • Bert336

    yay for Googlerola!

  • http://twitter.com/nashmax73 TomAss (TA)

    Hooray, Google stepping in to save its own skin will also save Moto from themselves!

  • Beka27

    It’s just me and Sweet Dee(X) until about June of 2012.  I’ll be very interested to see what the Android world looks like in 9-10 months…  I’m actually glad I don’t have an upgrade… it lets me sit back and watch.

    • Anonymous

      I updgraded to a DROID CHARGE from my DX but I should have waited because it wasnt that big of an upgrade :(

  • http://twitter.com/brigwheels patrick donati

    this news is so good, the stock market went up.  and my wang.

  • http://www.facebook.com/justin.whirley Justin Michael

    This is what I like to see when I open up CNN & DL.

  • http://twitter.com/binglut9 Brian

    Probably all moto devices will probably be unlocked now!!

  • http://twitter.com/binglut9 Brian

    This is awesome moto thats why I stuck with you whats up people get some…Haters there is some room on this bandwagon

  • http://www.facebook.com/people/Cameron-Carey/567445212 Cameron Carey

    Does this mean moto phones will receive more timely and stable OS updates? :)

  • http://twitter.com/ByTheBook4 CrookByTheBook4

    Everyone on here is so exited, there’s too many comments to like, Let’s get that pure Google experience back.

  • Shhhjhy

    Android FTW

  • Anonymous

    just awesome…that’s all i can say….Motorola was really starting to worry me and then they go and do something like this….and totally redeem themselves. Lets hope this deal results in some incredible new devices, though i cant imagine that it wouldn’t.

  • http://twitter.com/aaronhurt Aaron Hurt

    The Google Droid: now that IS the Droid I’m looking for.

    • http://twitter.com/chqueed charles rogers

      Execpt Verizon has the Droid name licensed, not Motorola.

    • http://twitter.com/chqueed charles rogers

      Execpt Verizon has the Droid name licensed, not Motorola.

  • http://twitter.com/amd683 Albert D

    better update schedules??

  • http://twitter.com/amd683 Albert D

    Holy Shit

  • FireSanjay

    First order of business… fire Sanjay.

  • Anonymous

    I just got an iPad2-32GB for $ 24.53 and my girlfriend loves her Dell laptop that we got for $ 35.46 there arriving tomorrow by UPS I will never pay such expensive retail prices in stores again. Especially when I also sold a 42 inch LED TV to my boss for $ 655 which only cost me $ 61.79 to buy.Here is the website we use to get it all from, GrabРenny.com

  • Crack Monkey

    Things will definitely be changing in the Mobile world. Goodbye Windows phone, ta ta Apple…..

    I expect Android will do to the mobile market what Windows did to the personal computing market…

  • http://twitter.com/eXtremeDX Clint

    Now what to do …Wait for the Vigor or give in and get the Bionc incase this google / motorola partnership turn out to mean more updates on the moto phones

  • Felicity

    So MOTO will unlock the BL soon???

  • Anonymous

    I’m reading more of your comments and I’m asking you to please refrain from being so confrontational. I won’t moderate you yet but please allow everyone to have opinions just as you do. Thank you. :)

  • StormbladeX69

    Very Cool! IMHO.

  • Nothing to see here

    Steve Jobs will claim that buying up other companies is a process proprietary to Apple…and he’ll sue.

  • http://twitter.com/texasdon Don Rogers

    Holy sheep s**t batman.  This is big

  • http://www.facebook.com/people/Ryan-Cheng/1402836859 Ryan Cheng

    I hope they are bring updates to the old phones as well… MILESTONE 2!

  • Anonymous

    Very nice. I don’t think the upcoming Nexus is going to be made by Motorola, but imagine the next next Nexus. With Google owning Motorola they can work much more closely optimizing the OS.

    And I really, really hope this means we get at least SOME Blurless phones. Or at least that Blur improves with support from Google.

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  • OG Droid

    Good news for people getting the Bionic, should get timely updates and maybe one day no blur. Could be support just as strongly as the og droid.

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

    Thinking back, I wonder now how long this has been in the works.  Could this have been the reason Moto Mobility split off from Motorola to begin with, as preparation to be sold off?

    • http://www.facebook.com/people/Brandon-Kirk-Hinson/1401588098 Brandon Kirk Hinson

      Thought the same thing when I first heard the news

    • RW-1

      No, that split was long before android, it was to save moto as a whole, because they were losing money on V3 clones. Moto as a whole would have gone down the tubes because of mobility losses at that time.

    • Larry Jr. Lima

      And also, if we look at closely at the Nortel auction, I think Google already had its sights at Motorola Mobility before then. What “Rockbid Co” did unknowingly was to put Google in a great position to push through with this acquisition. When regulators step in, all they will see is a company trying to defend its OS from litigation. But most of all, this betters the ecosystem and enhances competition!   

  • Anonymous

    I strongly believe that this has nothing to do with a hostile takeover and everything to do with arming themselves for a patent war with Apple/Microsoft/RIM/Nokia, etc.. 
    If what they say is believed to be true, then Motorola will keep churning out Blur phones. 
    The only way to “supercharge” Android is by packing patent grenades and machine gun that shoots 17000 patents a minute to anyway who gets in the way.. 

    • http://twitter.com/NemaCystX NemaCystX

      Except now they can request more closely assistance with its software.  Blur can be improved upon.

      But this transaction is definitely so Google can protect Android in the upcoming legal battles.  This probably also means those comments Jha said a few weeks ago about them “wanting to get into the Windows Phone market”  probably won’t happen now lol.This is a big victory for Android thanks to these patents.If Google can help Moto improve on the phones it churns out with Blur or a better UI, i’m all for it
      and who knows, maybe the Bionic was delayed till September because of this transaction that was coming up.  By federal law because of stock and all that, its illegal to talk about such transactions outside of the company or outside of a meeting.but I guess we’ll see,  but clearly the Bionic does NOT have stock Android, we all saw what it has from those pics when the Moto rep brought it to the stores to show the employees.

      • Anonymous

        I agree! Comparing Blur to stock vanilla android, I’d have to say that Blur does add some decent polishing and functionality to their phones, even if it’s not pretty sometimes. Collaboration in this case is better than competition. And in the end, hopefully the best outcomes are for consumers! 

  • Sean27030

    Holy patent lawsuit blockers Batman!!!!!…watch out Apple, Andy Android’s 3laws don’t apply to fruit…. dumbasses…. LMAO

  • http://twitter.com/rkein87 Rob Kein

    Holy Balls!

  • Anonymous

    So the obvious questions here are: What does this mean about the openness of future Motorola devices (will they be unlocked or capable of being unlocked like the Nexus line)? What does it mean, if anything, for current Motorola devices that are locked down? And does this mean all future Motorola devices will be vanilla Android? Is this the death of Blur?

    • Guest

      OLD ONES WILL HAVE BLUR AND MAYBE STARTING WITH THE BIONIC THEY ALL BE VANILLA ANDROID OR THEY WILL MAKE BLUR SO NICE WITH THE HELP OF GOOGLE THAT WE WILL LOVE IT

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

      I doubt Blur is going anywhere.  Sounds like Motorola will continue to do what they have been doing while Google uses their patent portfolio in court.

  • Anonymous

    HOLY SHIT!

    Wonder if the bootloaders will still be locked! ;)

  • http://www.facebook.com/RyanMcCall Ryan McCall

    I think I just came in my pants a little….No wait its a lot.

  • http://www.facebook.com/RyanMcCall Ryan McCall

    i think i just came in my pants a little