Google has entered into a definitive agreement to purchase Motorola Mobility Holdings. Google will acquire Motorola Mobility for a total of about $12.5 billion or $40.00 per share in cash, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011.
“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,” said Larry Page, CEO of Google.
The transaction has been approved by the boards of directors of both companies.
Google hopes that with the purchase of Motorola Mobility, a dedicated Android partner, it will be able to supercharge the Android ecosystem and enhance competition in mobile computing.
“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,” said Andy Rubin, senior vice president of Mobile at Google.
Google will run Motorola Mobility as a separate business and Motorola Mobility will remain a licensee of Android and Android will remain open.
“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,” said Sanjay Jha, CEO of Motorola Mobility.
The transaction is expected to close at the end of 2011 or early 2012 after regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders.