Google Buys up Motorola Mobility for 12.5 Billion
Just as I thought today would be another slow Monday morning in the world of mobile news; Google goes and makes some pretty big headlines. You may remember, (or have no idea entirely) that Motorola split its company into two separate divisions earlier this year. Motorola Inc split into Motorola Mobility and Motorola Solutions. While the money is surely all in the family the split was perfect for the company, its share holders and even its end users. A quote about the split back in January from Jim Mears, explains “They’re really two different businesses and to really unlock the value as two different organizations it was critical to split them into two so they can survive and grow on their own,”. If they only knew that this split would give them the ability to sell off the Mobility sector to Google. Or did they know the whole time?
Early Monday morning Google announced its plans to acquire the mobile handset giant. The acquisition is for one of the two parts of the recent Motorola split. Google has picked up Motorola Mobility for about 12.5 billion dollars, which, call me cheap seems a bit underpriced. But of course it’s not. The big G scooped up the company at about $40 bucks a share, which was priced out at a bit more than the price of the shares at the close of business on Friday of last week. The transaction was then approved by the directors of both companies’ boards and now Google owns Motorola Mobility, what do? This buy out as explained by Google’s own Larry Page is said to “supercharge the entire Android ecosystem” of course in the name of benefiting everyone involved, including me and you. Page goes on to welcome “Motorolan’s to the family of Googlers”, and I swore I just woke up in a SpaceBalls sequel.
So now what? Google just bought up one of the most iconic and legendary handset makers in the world. What will they do with it. Well nothing really. It seems that Google merely needed some of Motorola’s patents to face the ongoing war in that arena. Android is still open source, Motorola Mobility will still license the software and there will be no issues with others staying on board. So all in all it does not seem like there will be much of a change in regard to the business model of either company, but rather a push of Android in the right direction. But more importantly of course, “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.”
While the red tape and particulars still need to be sorted, we can expect this deal to be solidified later this year or in 2012 sometime. So let the patent trolling continue! Let us know what you think of this new acquisition and the future of Android. And as always you can find all the Motorola accessories you will ever needmotorola, Google, Android, Motorola Mobility, Buyout