Google to snap up handset-maker Motorola Mobility for $12.5 bn

Aug 15, 2011 |

New York

Tags:

In one of the biggest deals in the fast-growing mobile handset space, Internet giant Google will buy cellphone-maker Motorola Mobility for USD 12.5 billion.

The all-cash deal will boost Google's competitive edge in the mobile computing arena as well as give it access to Motorola's range of Android operating system-based offerings.

Google will acquire India-origin Sanjay Jha-led Motorola Mobility for USD 40 per share in cash, or a total of about USD 12.5 billion, the two firms said in a joint statement today.

Both companies have entered into a definitive agreement for the transaction, which has been unanimously approved by their respective boards of directors.

The offer represents a 63 per cent premium to Motorola Mobility's closing price on August 12.

Google and Motorola Mobility have a good presence in India.

"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 licencee of Android and Android will remain open. Google will run Motorola Mobility as a separate business," the statement said.

Subject to various regulatory approvals, the transaction is expected to close by the end of this year or early 2012.

"This transaction offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for our employees, customers and partners around the world," Motorola Mobility CEO Sanjay Jha said.

Google CEO Larry Page noted that both entities would create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.

"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," Jha noted.

Once a leading player, Motorola's share in the handset market has taken a beating in recent times, especially with stiff competition from players such as Apple and HTC.

Google Senior Vice-President (Mobile) Andy Rubin said both companies would work to develop and distribute innovative Android-powered devices.

Motorola Mobility's offerings include smartphones, tablets and wireless accessories, among others.

Post new comment

<form action="/comment/reply/90761" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-7c29f5422d7e4bbdeaa2a915361d3b03" value="form-7c29f5422d7e4bbdeaa2a915361d3b03" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="85330912" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>