Google is to buy Motorola Mobility for $12.5 billion, which equates to about $40 per share.
Motorola is one of Google’s key Android partners and, according to a press release from Google yesterday, the move will ‘supercharge’ the Android ecosystem. Google intend to run Motorola as a separate business and it will continue to license Android from Google. According to Google, the acquisition will ‘enhance competition’ in the mobile space.
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.”
Many industry analysts believe that Google’s acquisition of Motorola is primarily to increase the size of Google’s patent portfolio in light of the seemingly constant stream of litigation between Google and other mobile manufacturers. It also enters Google into the hardware manufacture industry directly, meaning we can expect newer and greater Android phones running the pure OS without any manufacturer software preinstalled. It is unclear whether Google will continue to manufacture Motorola handsets or move to manufacturing pure Google phones. It is also unclear whether we will see more lines of Google phone besides the Nexus family.