Android creator is turning its attention to handsets – with the shock purchase of Motorola.
 Click to enlarge |
| Hello Moto: Google to takeover mobile giant. |
Google has entered “a definitive agreement” to acquire Motorola Mobility Holdings, announced today.
The main attraction for the Android maker was the 17,000 patents Moto happen to own – handy in the ongoing patents struggle with Apple over mobile technology ownership.
“The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing,” the search giant said today.
Writing on his blog, CEO Larry Page also referred to this battle: “Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to ‘protect competition and innovation in the open source software community’ and it is currently looking into the results of the Nortel auction.”
Android partner HTC are also currently embroiled in a patents dispute with Apple, which Google previously pledged to help the Sensation maker fight.
“Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies,” he added.
Motorola launched the world’s first portable cell phone 30 years ago, and the smallest and lightest phone ever at the time, called StarTAC.
But Android OS will stay an open platform, and won’t interfere with its current relationship with other makers like HTC, Samsung and Sony Ericisson, Google confirmed.
“Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.”
But Larry Page is promising “amazing user experiences” for the eco system as a whole.
“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.”
Under the agreement 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 last, it said in a statement today .
The transaction has been “unanimously approved by the boards of directors of both companies.”
And the Atrix makers are happy also, saying “this transaction offers significant value for stockholders and provides “compelling new opportunities.”
“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,” Sanjay Jha, CEO of Motorola Mobility, said.
However, it is not a done deal just yet and is subject to regulatory approvals in the US, Europe and elsewhere, not to mention Motorola stockholders, but is expected to be finalised 2011 or early 2012.
“I look forward to welcoming Motorolans to our family of Googlers” Page added.
Shares in Motorola Mobility Holdings were up more than 50 percent at the start of US trading Monday on the news, AndroidCentral reports.
