Google To Acquire Motorola Mobility For $12.5 Billion – [PRESS RELEASE]

Google To Acquire Motorola Mobility For $12.5 Billion – [PRESS RELEASE]


Search giant Google today announced in a post published to its official blog that it will acquire Motorola Mobility for a staggering $12.5 Billion, ($40.00 per share). The news follows the firm’s stock price rising to a substantial high on Friday as rumors of the buy out began to surface.

Noting that Motorola would “remain a licensee” of Android, Google stressed that the proposed acquisition would not result in a merger, but instead result in the company running Motorola as a separate business. This, the company says, will enable Google to “supercharge” the Android ecosystem and “will further enhance competition in mobile computing.”

In a statement published to Google Investor Relations, Larry Page, CEO of Google, had this to say:

“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.”

In response to the acquisition, Sanjay Jha, CEO of Motorola Mobility, noted that the move would provide “significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for [Motorola's] 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,” he said.

Press release embedded below.

Press Release

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MOUNTAIN VIEW, CA and LIBERTYVILLE, IL – AUGUST 15, 2011 – 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.

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.

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In the event that Google does decide to pull out of this deal before it can be completed, the search giant will reportedly be required to pay Motorola Mobility $2.5 Billion.

[via 9to5Mac]