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Google Buys Motorola Mobility for the Patents

Google has just announced that it is about to acquire Motorola Mobility, the former Mobile Devices division of Motorola, for approximately $12.5 billion (or $40 per share), in cash no less!

In an official statement, the acquisition will “enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing.” The search engine giant also insisted that it will run Motorola Mobility as a separate entity, while its Android mobile operating system will remain open to all hardware manufacturers. At least the likes of HTC, Samsung, and LG can heave a sigh of relief.
Google co-founder and CEO Larry Page also writes in his blog that the company had looked to Motorola as “a market leader in the home devices and video solutions business,” hence the acquisition.

Page also states what many observers thought as the main reason why Google acquired Motorola Mobility: To grab Motorola’s patents, with approximately 14,600 granted patents and 6,700 pending patent applications worldwide. “(It will) enable us to better protect Android from anti-competitive threats from Microsoft, Apple, and other companies,” Page wrote.

Motorola Mobility has been known for its full dedication to Android with its bevy of “Droid” handsets, which were released on the Verizon network. There are currently three Droid smartphones: The original Droid, Droid X, and Droid 2.

The acquisition is subject to customary closing conditions and is expected to close by the end of 2011 or early 2012.


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