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Google buying Motorola Mobility for $12.5 billion

Posted: , by Victor H.

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Google buying Motorola Mobility for $12.5 billion
Well, that's what we call a good start of the week – Google and Motorola Mobility have announced a $12.5 billion deal under which the search giant will acquire the phone maker. This translates into a per share price of $40, meaning that Google is ready to pay 63% over Motorola Mobility's share price as per the company's Friday's closing price. This puts the search company on the same foot as Apple and other Android handset makers as Google will turn into more than just a platform maker.

The deal is expected to close by the end of 2011/beginning of 2012. But it's not just Motorola's handset expertise that this deal brings - it's a transaction which is equally about patents. Just a couple of days ago Motorola said it wants a piece of that patent pie and that might have been one of the reasons for the acquisition. Motorola Mobility reportedly owns more than 17,000 patents and is among Google's best options for defending its mobile OS. Google's Larry Page himself points out:

"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." Page was also excited about the possibilities this brings for Android, "supercharging" the platform.

Andy Rubin heading Google's mobile efforts reaffirmed the company's commitment to Android as an open source platform as well as to the open source community. The deal would only elevate the platform, while Google itself will continue to work with its Android partners and continue distributing devices running the OS.

What were the reverberations among Motorola Mobility's fellow Android phone makers? The chief executives of HTC, LG and Sony Ericsson all welcomed the news as the move both defends and strengthens Google's case for the platform. But this opens a ton of questions starting with the future of Motorola's Blur skinning and ending with how this affects rival platforms and most notably Microsoft's Windows Phone. Not all answers will come right away, but Motorola Mobility's conference call is live now and will definitely add more clarity to the picture - we'll update you soon, so stay tuned.

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posted on 15 Aug 2011, 07:19 17

1. BlackCoffee (Posts: 6; Member since: 13 May 2011)

Wow ! Google did it again.. So they gona acquire hell lotta patent, hardwares & technologies.. And of course, from now on they can make their own phones & tabs ! Cheers Google !

posted on 15 Aug 2011, 14:59 5

95. MATOZ (Posts: 74; Member since: 10 Aug 2011)

Now will see "GoogleBlur" UI, and GoogleDroid and Goom Tablet! jaja
Seriously, Steve Jobs gonna cry for this...

Hail! Google!! for your step on this.

posted on 15 Aug 2011, 21:34 1

114. Goldeneye (Posts: 419; Member since: 22 Jan 2011)

I really hope they get rid of crapblur for good, and leave the new MOTOs stock Android

posted on 15 Aug 2011, 07:20 17

2. JeffdaBeat (unregistered)

Google is not playing around...

I think this is a fantastic thing for Google. Finally, we will see a phone created by Google directly, both software and hardware. I doubt they'd put out an underpowered phone with their signature on it so the official Google phone might be the one to get. Plus, it goes Google some power, instead of constantly putting it in the hands of other companies. This will be epic...

posted on 15 Aug 2011, 07:55 7

14. beatlesfan (Posts: 150; Member since: 03 Mar 2011)

+1. The first phone put out by Google (hardware) is going to be epic. P.s. I haven't seen you on here for a long time Jeff. You always have good arguments and points without name calling and homophobic slurs.

posted on 15 Aug 2011, 08:26 5

32. droid.rv (Posts: 10; Member since: 18 Jul 2011)

i hope this translates into a droid-like nexus device..with android jello.. :D
i'm soooooooooo excited. this is the best news i have heard in recent times.. :) :)

posted on 15 Aug 2011, 08:22 2

28. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

Jeff!!!! long time no see :D I sure miss your comments man, and yes if Google and Motorola do an android line together this could end up being really epic, competitors with android will have to look better for their production in order to keep things going and this could end up being better

posted on 15 Aug 2011, 17:11 5

101. JeffdaBeat (unregistered)

It's going to be a beast. Google will be able to combine a sexy phone and give it some awesome power. Plus, Google has cash to devote towards new technology and I can't wait to see what they bring to the table. They can afford to risk something new whereas other companies can't...

And yes, it seems like I've grown into a bit of a lurker on here. Just seems like every topic is a series of flame wars. There are a few on this topic, which sucks because this move is going drive so much innovation. It just seems like there is so much fanboyism going around that there isn't even a point in having a conversation.

posted on 15 Aug 2011, 20:35

110. beatlesfan (Posts: 150; Member since: 03 Mar 2011)

I can't say I blame you there.

posted on 17 Aug 2011, 08:55

143. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

well I must Agree, things go more than just being a clash of point of views on a related topic to a bunch of hatred and calling people names

posted on 15 Aug 2011, 07:20

3. dionddc (Posts: 129; Member since: 19 Jul 2011)

Motorola is one of the less prominent companies in the smartphone market in terms of market share. Other than patents, there's got to be a more valid reason for this acquisition.

posted on 15 Aug 2011, 09:52

49. KingK (unregistered)

In the US they are, US is the only thing that matters. Ask Nokia.

posted on 15 Aug 2011, 07:31 1

4. mpthiel (Posts: 2; Member since: 03 Aug 2011)

$12.5Bil is a pretty penny! This sure would boost Google's patent portfolio!

posted on 15 Aug 2011, 07:36 3

5. jura21 (Posts: 30; Member since: 20 Jun 2011)

android surely strengthens its grounds...moto was the first company to make a cell phone if i am not mistaken...this gives google pretty strong patents to sue each and every other device manufacturer if those OEM's try to bully android

posted on 15 Aug 2011, 07:40 10

6. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Even though I'm the one who tipped you guys to this, I'm still flabbergasted...

This was NOT what I expected to hear on a Monday morning, and of course I'm kicking myself for not owning any Moto stock, as its value almost doubled in premarket after the announcement.

This is huge news, and I think very good news. With Moto's great hardware and Google's amazing software, we're going to see some major kickassery in the next couple of years.

Jha, you son of a bitch. Lol. You knew. Dammit, you KNEW.

posted on 15 Aug 2011, 08:03

19. BikeRunBrian (Posts: 12; Member since: 10 Feb 2010)

This is a 4 year old's post. Put some info behind your vague negativity.

posted on 15 Aug 2011, 08:09 2

21. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

You may notice that normally I haven't been replying to you, but it's worth noting that in order to be a troll you had to contradict yourself:

"Motorola hasn't made a good device since the Droid and even that one sucked."

You can't make a good device that sucks at the same time, Miz.

And I just saw the breaking news on CNN and immediately emailed Phonearena. I didn't have an inside scoop. So...yeah.

posted on 15 Aug 2011, 08:23

30. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

why is Motorola inferior in hardware? I would like to know? their big issue was software related and with Google on their ecosystem now this could simply change

posted on 16 Aug 2011, 02:08 1

125. madmikepr (Posts: 138; Member since: 09 Aug 2011)

miz you suck for real xD

posted on 16 Aug 2011, 19:40 1

142. InspectorGadget80 (unregistered)


posted on 15 Aug 2011, 09:10 3

41. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)

Hey Sniggly I saw the news too & I think this is the perfect move Google NEEDED to make. Motorola has been in business before the iPhone was even a glimmer on Steve Jobs' eye. This now protects Android & most importantly the other manufactures like HTC & Samsung. Android is going to be ok from here on out & everyone will benefit from this. Apple will have no choice but to fold all of its bogus lawsuits. This is truly a great day for Google, Android, & Motorola. I guess Motorola will be making the Nexus Prime huh?

posted on 15 Aug 2011, 10:08 3

52. ilia1986 (unregistered)

I actually kinda expected you to b somewhat sad, as I know you're a moto fan and all. ; - )

But yes this is actually VERY good news. With Apple threatening to turn the legal Death Star on the Xoom very soon and all..

I dare Apple to try to sue the big G or the Xoom now. Google will kick them so hard in the ass and rape their iJoke so hard that all the evil Apple lawyers will by buried under the rubble of the Spaceship complex.

Can't wait for Google Droid X3 : )

posted on 15 Aug 2011, 10:12 7

54. remixfa (Posts: 14605; Member since: 19 Dec 2008)

Google just aquired a big M logo'ed shield.... And probably a few droid flavored super weapons of its own in the apple nazi court invasion.

You awoke the giant, and now its going to step on you, apple.

posted on 19 Aug 2011, 02:22

151. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

just to prove it--jha did not know-- he sold a huge amount of stock quite recently-- he dud have waited if he knew

posted on 15 Aug 2011, 07:42 2

7. remyrz (Posts: 205; Member since: 28 Oct 2010)

omg omg omg... I´m exited.. i dunno why :DDDD this is BIIIG

posted on 15 Aug 2011, 07:42 1

8. som (Posts: 768; Member since: 10 Nov 2009)

crazy Apple started patents battle fields. I hope Bill Gates will buy Apple and using Windows in iPhone or make it disappear like Nextel.

posted on 15 Aug 2011, 08:10 4

22. blade19 (Posts: 63; Member since: 29 Apr 2011)

Well this almost happened in the early 90's, but Bill Gates choose to save Apple instead of creating a monopoly... true story... However, Apple as long paid the debut off..

posted on 15 Aug 2011, 08:12 2

25. blade19 (Posts: 63; Member since: 29 Apr 2011)

oops... ...debt

posted on 15 Aug 2011, 07:44

9. rex0422 (Posts: 30; Member since: 12 Aug 2011)

12.5 billion dollars is truly a, um, a lot of money. However, this doesn't really translate a good sign for Google's future. Why? It's because Motorola is one of the prominent (less important) companies... On contrast, Google would have to acquire a lot of patents to make its competitors envy them. Android itself is a great platform and I loved it, but again, I am not so sure it would be good for Google. Fingers crossed!!!

posted on 15 Aug 2011, 09:37 3

47. deezy (Posts: 46; Member since: 10 Feb 2011)

Do you even know what prominent means? Obviously not if you put (less important) by it.

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