No one saw this coming. Google on Monday said it would buy Motorola Mobility for US$40/share, or $12,5bn, a premium of 63% to the share’s closing price on Friday. The transaction was unanimously approved by the boards of directors of both companies.
In a statement announcing the deal, Google said the acquisition of Motorola Mobility — “a dedicated Android partner” — would allow the company to “supercharge the Android ecosystem” and would “enhance competition in mobile computing”.
Android is Google’s fast-growing operating system for smartphones and tablet computers. The acquisition will result in Google getting access to Motorola’s powerful portfolio of patents.
“Motorola Mobility will remain a licensee of Android and Android will remain open,” Google said, adding it would run Motorola Mobility as a separate business.
“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” said Google CEO Larry Page. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”
Echoing Page’s statement, Google senior vice president of mobile, said the company’s vision for Android remained “unchanged” and that it was “firmly committed to Android as an open platform and a vibrant open-source community”.
Dozens of handset manufacturers, from HTC to Samsung, use Android to power their smartphones. — Staff reporter, TechCentral
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