Google is Going to Buy Motorola Mobility for US$12.5 billion

Posted on Tuesday, August 16, 2011 by Unknown

Google has announced today that it's planning to purchase Motorola Mobility for a worth of US$40 per share, that adds up to a complete quantity of US$12.5 billion. Taking Google's patent wars under consideration, Motorola's portfolio of 17000 patents might have been a vital factor behind the deal. in keeping with a blog post by Google's CEO Larry Page, Motorola are going to be run as a separate business, whereas Android can stay an open platform.

More than one hundred fifty million devices running Google's Android are activated worldwide and this range is increased by 550,000 new devices each day, Larry Page says. whereas Motorola has been committed to the Android platform since 2008, with, as an example, the DROID line of smartphones, Larry Page calls the acquisition a "natural fit" adding that it is a way to improve the Android ecosystem and to boost competition on the market.

The transaction, however, desires regulatory approvals from the U.S., the eu Union, as well as Motorola Mobility's stockholders, and is predicted to be closed by "the end of 2011 or early 2012," in keeping with the press release.

Motorola Mobility was formed in January 2011, when Motorola Inc. split into 2 corporations. Motorola Solutions has been centered on enterprise-tailored solutions, whereas Motorola Mobility on cell phones and tablets. the company has definitely contributed to the development of the mobile industry generally, like by having released the world's 1st moveable cellular telephone and also the StarTAC clamshell, and by being a founding member of the Open Handset Alliance.

According to a recent comScore report, in June 2011 Motorola was ranked the third mobile OEM within the U.S., with 14.5 % of mobile subscribers using its devices (smartphone and non-smartphone), behind LG and Samsung, whereas globally Motorola was ranked seventh in 2010, with simply a 2.4 % market share, in keeping with Gartner.