Google Buys Motorola Mobility for $12.5bn to Bolster Mobile Business

Motorola Defy+
New Motorola Defy+ running Andriod

Google has announced that it would buy Motorola Mobility, formerly the mobile division of Motorola, for $40.00 per share amounting to a total of $12.5 billion with a large 63% premium from August 12 shares. Google say that the acquisition would to bolster its patent profile to prevent patent litigation and would help expand Google’s mobile business into new areas.

Larry Page, CEO at Google, said in a blog post that the purchase would “not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences.”

Larry Page mentioned that Microsoft and Apple were working together to purchase patents, he hopes that Android would be better protected from the “anti-competitive threats from Microsoft, Apple and other companies.” Google previously criticized Microsoft of imposing a “tax” for Android buyers by making companies pay licensing fees for each device sold.

The acquisition would not effect the open-source Android operating system which would remain open. The two sections of Google’s mobile business would be run separately, Google said “many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.”

Both companies iterated the benefits for shareholders with Sanjay Jha, CEO of Motorola Mobility, saying “this transaction offers significant value for Motorola Mobility’s stockholders”.

Motorola Mobility also yesterday announced a new edition of their “water resistant, scratch resistant and dust proof” Defy+ phone featuring Android.

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