Google
and Motorola have just announced that Google will acquire Motorola
Mobility for about $12.5 billion, a premium of 63 per cent from its
closing share price on Friday, August 12. Motorola is the sole
Android-only smartphone vendor. Google plans to run Motorola Mobility as
a separate business. Hit the break for the complete press release.
Developing…
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences
MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. – Aug. 15, 2011 –
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.
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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