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Google acquiring Motorola Mobility

Google announced today that it is acquiring Motorola Mobility in a “definitive agreement” for a nice chunk of change — 12.5 billion dollars. Keep reading for the details.


Google is making a purchase, and it’s a big one. So big, in fact, that it “reshapes the booming market for smartphones as computing shifts from the desktop to mobile devices,” says The Wall Street Journal.

A Google press release detailed the deal between Google and Motorola, worth $12.5 billion. Google is acquiring Motorola Mobility Holdings, Inc., for $40 per share (in cash). The Boards of Directors of both Google and Motorola Mobility unanimously approved the deal.

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The Wall Street Journal reports that the acquisition, which gives Google its own in-house hardware, might allow Google to “challenge” Apple. Unlike Apple (as well as RIM and HP), Google doesn’t own any of its hardware. The deal will obviously change that. Additionally, Google will now have ownership of many patents.

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“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” said Larry Page, CEO of Google. “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.”

Motorola Mobility will remain a licensee of Android under the deal and other hardware manufacturers can use Android at no cost. Additionally, Motorola Mobility will be run by Google as a separate company.

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

“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.”

Google hopes that the purchase will be approved and finalized by late 2011 or early 2012. For more details, see Wired or L.A. Times.

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