HetalDP 947 Report post Posted August 15, 2011 Google Acuired Motorola Mobility for $12.5 Billion Happy Monday to you, and happy Monday to Motorola Mobility, which Google has announced is about to become its next acquisition. This comes hot on the heels of a $56 million Q2 net loss for Moto -- and CEO Sanjay Jha's less than subtle hints about going fishing for Android-related patent royalties. Now, at a price of $40 per share for a total of about $12.5 billion, Big G will be making Moto a "dedicated Android partner" to "supercharge the Android ecosystem" and "enhance competition in mobile computing." Larry Page had this to say about the deal: 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. What happens next? While this will of course strengthen the ties between hardware and software, Google is pledging to continue offering Android as an open platform -- Moto will license it and others will be able to as ever. Additionally, Google will continue to operate its new toy as a separate business and not morph it into an in-house hardware wing. But, one has to wonder what this means for companies like Samsung, which partnered closely with Google on the Nexus S, and of course HTC, which released the Nexus Oneand the iconic G1. And then there's the big question: just where does Moto Blur fit into this equation? Happy Monday to you, and happy Monday to Motorola Mobility, which Google has announced is about to become its next acquisition. This comes hot on the heels of a $56 million Q2 net loss for Moto -- and CEO Sanjay Jha's less than subtle hints about going fishing for Android-related patent royalties. Now, at a price of $40 per share for a total of about $12.5 billion, Big G will be making Moto a "dedicated Android partner" to "supercharge the Android ecosystem" and "enhance competition in mobile computing." Larry Page had this to say about the deal: 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. What happens next? While this will of course strengthen the ties between hardware and software, Google is pledging to continue offering Android as an open platform -- Moto will license it and others will be able to as ever. Additionally, Google will continue to operate its new toy as a separate business and not morph it into an in-house hardware wing. But, one has to wonder what this means for companies like Samsung, which partnered closely with Google on the Nexus S, and of course HTC, which released the Nexus Oneand the iconic G1. And then there's the big question: just where does Moto Blur fit into this equation? Show full PR textGoogle 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. Webcast Information Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live at http://investor.shar...BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call. About Google Inc. Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com. About Motorola Mobility Motorola Mobility Holdings, Inc. fuses innovative technology with human insights to create experiences that simplify, connect and enrich people's lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally can be identified by phrases such as Google, Motorola or management of either company "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe the proposed transaction, including its financial impact, and other statements of management's beliefs, intentions or goals also are forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of Google or Motorola stock. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals at all or in a timely manner; the ability of Google to successfully integrate Motorola's operations, product lines and technology; the ability of Google to implement its plans, forecasts and other expectations with respect to Motorola's business after the completion of the transaction and realize additional opportunities for growth and innovation; and the other risks and important factors contained and identified in Google's and Motorola's filings with the Securities and Exchange Commission (the "SEC"), such as their respective Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Neither Google nor Motorola undertakes any obligation to update the forward-looking statements to reflect subsequent events or circumstances. Additional Information and Where to Find It Motorola intends to file with the SEC a proxy statement in connection with the proposed transaction with Google. The definitive proxy statement will be sent or given to the stockholders of Motorola and will contain important information about the proposed transaction and related matters. SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY WHEN IT BECOMES AVAILABLE. The proxy statement and other relevant materials (when they become available), and any other documents filed by Motorola with the SEC, may be obtained free of charge at the SEC's website, at www.sec.gov. In addition, security holders will be able to obtain free copies of the proxy statement from Motorola by contacting Investor Relations by mail at Attn: Investor Relations, 600 North U.S. Highway 45, Libertyville, IL 60048. Participants in the Solicitation Motorola and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Motorola stockholders in connection with the proposed transaction. Information about Motorola's directors and executive officers is set forth in its proxy statement for its 2011 Annual Meeting of Stockholders, which was filed with the SEC on March 15, 2011, and its Annual Report on Form 10-K for the year ended December 31, 2010, filed on February 18, 2011. These documents are available free of charge at the SEC's website at www.sec.gov, and by mail at Attention: Investor Relations, 600 North U.S. Highway 45, Libertyville, IL 60048, or by going to Motorola's Investor Relations page on its corporate website at http://investors.motorola.com. Additional information regarding the interests of participants in the solicitation of proxies in connection with the transaction will be included in the proxy statement that Motorola intends to file with the SEC. 2 Share this post Link to post Share on other sites
RavitejaSrigiriraju 10 Report post Posted August 15, 2011 i guess we all be in the control of google/android someday , just like the skynet from terminator 2 Share this post Link to post Share on other sites
HetalDP 947 Report post Posted August 15, 2011 They bought Motorola 63% higher then Market Price its all about Patents my boy Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted August 15, 2011 Phew.... This is possibly the biggest development in smartphone market after Android... May shake up the smartphone landscape in more ways then one.. Is google turning into a hardware + software combo like apple ? Loaded with possibilities!! 1 Share this post Link to post Share on other sites
ami1 237 Report post Posted August 15, 2011 Some respite from the senseless patent war by apple Share this post Link to post Share on other sites
digitalnirvana 646 Report post Posted August 15, 2011 Big move this, so far Google was equal to all OEMs for Android but now Motorola might get preferential treatment. Will be interesting to see how other OEMs react to this. Share this post Link to post Share on other sites
HetalDP 947 Report post Posted August 15, 2011 Larry Page Statements This acquisition will not change our commitment to run Android as an open platform,” Page noted in his post. “Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.” Google is obviously looking to build a scenario where it can control the end-to-end Android user experience as a result of this acquisition, but it also appears that the company is looking to protect the Android ecosystem as a whole by using patents obtained through the deal to fight off assailants like Apple and Microsoft. Motorola have 17000+ Mobile Patents Share this post Link to post Share on other sites
HetalDP 947 Report post Posted August 15, 2011 And just so you know, both Larry Page and Andy Rubin have already said multiple times that Android remains open. Rubin spoke with the top 5 manufacturers yesterday and made it very clear to all of them that nothing has changed. Motorola will operate as its own company and Android will remain open to use as it has been. The idea here is that it gives Google a chance to “supercharge” the OS. Share this post Link to post Share on other sites
abhi.r 95 Report post Posted August 15, 2011 12.5b that's a HUGE figure. Sent from my SPH-D700 using Tapatalk Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted August 15, 2011 Is the new pure google device coming from Motorola? With Ice Cream Sandwitch.. Share this post Link to post Share on other sites
pasumark 51 Report post Posted August 15, 2011 Real fight starts now. Good for consumers Share this post Link to post Share on other sites
kundalus 24 Report post Posted August 15, 2011 This seems more for the patents owned by Motorola and obviously that Google is trying to get head on with Apple to become a hardware and software giant in mobile sector. Hope Google continues focusing more on enriching the user experience though from Motorola's offerings.... Share this post Link to post Share on other sites
tanveer 59 Report post Posted August 15, 2011 I want gb for my defy now! Sent from my MB525 using Tapatalk Share this post Link to post Share on other sites
me_saket 73 Report post Posted August 15, 2011 Hope this will bring back good market share of motorola in india. Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted August 15, 2011 Wall Street Journal is reporting that Motorola has put a $2.5 billion Reverse Termination Fee on Google. >> http://blogs.wsj.com...latory-worries/ In English, that means if Google can’t push the acquisition across the finish line — including, presumably, because the government won’t allow the deal to happen — Google would owe Motorola $2.5 billion. That’s an unusually large 20% fee. Typically, termination fees tend to be roughly 3% of the value of a deal or higher. Share this post Link to post Share on other sites
Genius 817 Report post Posted August 15, 2011 Why Google Bought Motorola Mobility, And What It Means $12.5 billion: That's about a third of Google's cash reserves, as per the most recent figures, which demonstrates exactly how gigantic a move this is. But exactly why is Google pulling this trick off? http://www.fastcompany.com/1773548/google-bought-motorola-mobility-12-point-five-billion-what-it-means Share this post Link to post Share on other sites
Meherab 2 Report post Posted August 15, 2011 okay as they cross the finish line i guess we need to focus more on moto devices. I guess all their devices will be like the nexus series instant updates and i guess in today's day that is something we all would like Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted August 15, 2011 On Twitter... Google's purchase of Motorola, translated "You want to sue us for patent violation, Apple? We're buying the company that invented the mobile" 1 Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted August 15, 2011 (edited) ^^^^^^ Those are the same words, that came to my mind, when I read the news... LOL... So next MOTO-Android phones will come with pure/clear UI and NOT BLURed ones like before and I do hope this will end their locked bootloader games as well... Earlier Moto android phones sells relatively less due to the fear that "those lazybones may NOT update them fast", but now with their new BOSS, all new moto_androids may be as good as nexus phones and sell much much more than before... Earlier Moto was the most important co to bring DualSIM C+G handsets (and also world phones) to Asian markets... Lets hope Google NOT stop that trend... ALL ISSS WELLLLLL.... Edited August 15, 2011 by KanagaDeepan Share this post Link to post Share on other sites
thilak.kmb 19 Report post Posted August 16, 2011 A very interesting development in this field. By the end of this year we will know what is up in Google's sleeve. Share this post Link to post Share on other sites
Genius 817 Report post Posted August 16, 2011 Earlier Moto android phones sells relatively less due to the fear that "those lazybones may NOT update them fast", .. That's not the case, 2.3.4 came first for Moto Atrix almost 2 months back which is close to nexus. Still not there for many big sellers. Share this post Link to post Share on other sites
Karthik R 246 Report post Posted August 16, 2011 Motorola Mobility has more than 14,600 patents with nearly 7000 other patent applications pending worldwide, according to the company Website. That's a pretty big arsenal that could provide Google some leverage to countersue competitors should the recent Android patent wars continue. Share this post Link to post Share on other sites
HetalDP 947 Report post Posted August 16, 2011 Motorola holds 17,000 approved patents and has another 7,500 pending approval. Share this post Link to post Share on other sites
Genius 817 Report post Posted August 16, 2011 (edited) Survey Says: Motoogle or Googorola? Take part it's interesting http://allthingsd.com/20110815/survey-says-motoogle-or-googorola/?mod=socialflow I like GoolmooL.......lol Edited August 16, 2011 by Genius Share this post Link to post Share on other sites
Jagan T 16 Report post Posted August 16, 2011 Really a surprising news. Google wants to play a vital role in the mobile hardware/software market like Apple. Even though its Android is leading the mobile software field, in the hardware front Google needs a existing player like Motorola. Can any of RimWeb STARs could compile and post a writeup in the Patent Issue with Microsoft and other Android smart phone makers? This Googorola ( Nice name from our Genius) combo wil make any impact in the above issue? Share this post Link to post Share on other sites
