Google acquiring Motorola.

[ChazUK]

http://techcrunch.com/2011/08/15/breaking-google-buys-motorola-for-12-5-billion/

Google just announced that it is acquiring Motorola.

press release below, updates following:

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

“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.”
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 licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

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.”

Sanjay Jha, CEO of Motorola Mobility, said, “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.”

Andy Rubin, Senior Vice President of Mobile at Google, said, “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.”

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.

I didn't expect that to happen. That's one way to bolster your patent portfolio.

 

[KnightWRX]

Maybe Motorola will start producing desirable Android devices now at least ? Their offerings were much lesser than what the competition was doing in that arena. HTC, Samsung and heck even Sony Ericsson's newest crop were all much better.

The Atrix had potential but it seems to have fizzled away.

 

[maflynn]

Wow this is huge if it goes through. What I wonder is how will HTC, Samsung and others respond. The Nexus One failed in part because google tried to market its own phone. With google making its own phones now, how will the relationship with its other partners be reshaped

 

[ChazUK]

Maybe Motorola will start producing desirable Android devices now at least ?

The end of Motorola's locked/encrypted botloader policy and customisations would be great. Outside of the U.S, Moto have been very poor.

Wow this is huge if it goes through. What I wonder is how will HTC, Samsung and others respond. The Nexus One failed in part because google tried to market its own phone. With google making its own phones now, how will the relationship with its other partners be reshaped

That's waht I was wondering. What bout other OEM's dependant on Android? Hopefully nothing will change.

 

[KnightWRX]

Wow this is huge if it goes through. What I wonder is how will HTC, Samsung and others respond. The Nexus One failed in part because google tried to market its own phone. With google making its own phones now, how will the relationship with its other partners be reshaped

The Nexus One failed ? No, you mean Google's online phone store failed, the Nexus One was a pretty popular model and was carried by many carriers afterwards. Here one carrier even made it their flagship for quite a while.

 

[stridemat]

Interesting acquisition, way to increase your market share.

 

[ChazUK]

The Nexus One failed ? No, you mean Google's online phone store failed, the Nexus One was a pretty popular model and was carried by many carriers afterwards. Here one carrier even made it their flagship for quite a while.

Not to mention it had a very successful brother, the HTC Desire!

 

[kclimson]

Useless

I dont see the point of Google acquiring Motorola.

 

[KnightWRX]

Interesting acquisition, way to increase your market share.

How does this increase their market share ? This increases their patent portfolio if anything.

I dont see the point of Google acquiring Motorola.

Patents. Google has been whining about needing patents for defensive purposes, Motorola has tons. See the point now ?

 

[ChazUK]

I dont see the point of Google acquiring Motorola.

This might have something to do with it:

Source

 

[stridemat]

How does this increase their market share ? This increases their patent portfolio if anything.

Motorola have been a 'brand' for years. Associating this with the Android OS can only be beneficial to Google.

The patent portfolio is also a very good point. Google obviously felt exposed with the recent Apple/Microsoft/others purchase.

 

[maflynn]

Good point they've been struggling to acquire patents and now they get a manufacturing arm as well

----------

The Nexus One failed ? No, you mean Google's online phone store failed, the Nexus One was a pretty popular model and was carried by many carriers afterwards. Here one carrier even made it their flagship for quite a while.

Semantics, the phone failed to sell even though design wise it was a great phone.

 

[Arkangil]

Did all of those patents stay with Motorola Mobility when the company split? I guess they must have, if Google wants to invest so much to purchase it. I wonder if Apple even know the company was on the market. I'm sure they could have won a bidding war if they felt the need to.

 

[OllyW]

This might have something to do with it:
Image
Source

They'll be buying into more conflict with Apple...

https://www.macrumors.com/2010/10/06/motorola-files-suit-against-apple-for-patent-infringement/

https://www.macrumors.com/2010/10/30/apple-sues-motorola-over-multi-touch/

https://www.macrumors.com/2011/08/10/apple-suing-motorola-over-design-of-xoom-tablet/

 

[KnightWRX]

Motorola have been a 'brand' for years. Associating this with the Android OS can only be beneficial to Google.

Uh ? Motorola has been on board the Android train for quite a while now. They have been failing at selling phones recently, losing market share quarter after quarter even though they've been pushing out Android models with plenty of functionality (see the Droid line-up, or things like the Charm, Atrix and plenty of others.). They even have their own Android UI which is called MotoBlur. Also, you might know of this little tablet called the Xoom if you recall.

So there's no gain in this arena really, I don't see how this changes anything for Google as far as Android adoption or branding is concerned.

The patent portfolio is also a very good point. Google obviously felt exposed with the recent Apple/Microsoft/others purchase.

The patent portfolio is the point.

Semantics, the phone failed to sell even though design wise it was a great phone.

Failed to sell "Direct from Google". It didn't fail to sell as a stand-alone model. Remember, the only numbers we had were from the "direct from Google" sales. The phone store failed.

It's not semantics, the Nexus One was a successful handset, outside the "Direct from Google" channel.

 

[ChazUK]

They'll be buying into more conflict with Apple...

https://www.macrumors.com/2010/10/06/motorola-files-suit-against-apple-for-patent-infringement/

https://www.macrumors.com/2010/10/30/apple-sues-motorola-over-multi-touch/

https://www.macrumors.com/2011/08/10/apple-suing-motorola-over-design-of-xoom-tablet/

Looks like something that Apple has avoided (taking on Google directly) could now be done by proxy. Despite this, they'll have more leverage with the patent portfolio behind them in other lawsuits as well.

I assume this drags Google into the Motorola vs Microsoft suit as well?

 

[talkingfuture]

Official statement here

http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html

Could be quite significant down the road.

 

[robbieduncan]

Motorola have been a 'brand' for years.

But a very tarnished brand (at least I perceive it to be so in Europe). No good phones for how long? Microsoft buying Nokia makes more sense (not happened yet) as people still love their Nokia phones.

 

[smiddlehurst]

While I understand the need to aquire a patent portfolio to at least attempt to defend Android I'm really not sure if this is the way to do it. Can't imagine that the other big name Android manufacturers are too happy about Motorola now effectively being Google's hardware arm and they're surely going to be watching very closely for any advantage from that arrangement. Certainly wouldn't be surprised if Samsung, HTC and the rest start putting more resources into either WP or maybe branching Android into their own versions.

Certainly going to be a very interesting time in mobile over the next year or two...

 

[stridemat]

But a very tarnished brand (at least I perceive it to be so in Europe). No good phones for how long? Microsoft buying Nokia makes more sense (not happened yet) as people still love their Nokia phones.

Still shipped 9.3million handsets in Q1 2011. Still nowhere near the numbers Apple and Google have been posting, but a sizeable number no less. The brand must still mean something.

 

[kenypowa]

17,000 patents. Guess how many Apple infringed?

 

[ChristianVirtual]

I guess Apple would not have been allowed to pay that money. Sure the patents are the main purpose for Google to become a real manufacturer.

 

[Hellhammer]

Wow that was quick! My RSS was slower than this. Thanks for the tip though, was able to cover this before most of the other major news sites

 

[robbieduncan]

Still shipped 9.3million handsets in Q1 2011. Still nowhere near the numbers Apple and Google have been posting, but a sizeable number no less. The brand must still mean something.

Of which only 4.1 million were smartphones (so directly comparable with Apple). Most of these were probably running Android. If you go out in the street and ask people in the UK and Europe who will make their next mobile phone I bet very few would say Motorola.

 

[Hellhammer]

If you go out in the street and ask people in the UK and Europe who will make their next mobile phone I bet very few would say Motorola.

But times can change. If Motorola/Google is able to come up with a great phone, then the consumers will buy it. Back in the days, everyone would have answered Nokia but right now, maybe one out of 1000 might.