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Google is buying Motorola Mobility in a bid to “supercharge” Android

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Google acquires Motorola Mobility

For all the years that I have been covering the tech news scene, it’s very seldom that the news affects me upon only reading the headline. Today, a breaking news bit just made that happen. Google has announced that the company is acquiring Motorola Mobility for $12.5 billion. Motorola Mobility’s selling value of $12.5 billion (equivalent to $40 per share) brings a 63% premium on the recent price of Motorola share at the closing of the market last Friday. In a blog post signed by Google CEO Larry Page explains the reason fo Google’s plan to buy Motorola Mobility:

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.

Motorola has been a staunch of the Open Handset Alliance ever since it was launched. And in case you forgot, this alliance paved the way for the Android Platform, which spread on smartphones and is now a tremendous force in the mobile industry. Another important part of the announcement is the fact that Google promises to continue running Android as an open platform and will run Motorola as a separate business. Meaning, other manufacturers who might be worried that Motorola will be getting special attention from Google and the Android platform should rest assure that Google promises to maintain Motorola as a licensee of Android.

But then, the blog post also mentioned that “…the combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences…” This according to Mr. Page will create huge value for Google shareholders.

Via [The Official Google Blog]

The full press release of the announcement below:

Google to Acquire Motorola Mobility

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

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–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.

“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.”

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.

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