Google Buys Motorola Mobility

Posted on August 15, 2011

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LAUREN LINDER

Google plans to give Apple a run for its money in the race to be the technology leader in the US after announcing Monday morning its upcoming acquisition of Motorola Mobility.

In an effort to boost its Android mobile software and to compete in the smartphone market with rival Apple, Google will buy the phone hardware maker for $12.5 billion, or $40 per share in cash, 63 percent more than Motorola Mobility’s Friday closing share price.

Google will run Motorola Mobility as an individual business.

The agreement marks the largest deal in Google’s history and what may be the most significant.

Courtesy of CNN.

As the manufacturer of the Android mobile phone operating system, Google has made great advances in the smartphone industry. However, it has not been able to provide the quality hardware offered by other cell phone enterprises.

With its imminent acquisition, Google intends to revamp the smartphone business by gaining the wireless hardware knowledge that it has lacked, and could become the first major competitor to Apple’s iPhone.

“What [this deal] says is that Google wants to provide a total experience that’s hardware and software [like Apple],” said Colin Gillis, BGC Partners analyst.

Courtesy of Google.

Motorola Mobility broke away from the rest of Motorola in January, thereby having the ability to reinvent itself as a manufacturer of smartphones using the Google’s Android software.

As more people adopt smartphones throughout the world, Android becomes increasingly important to Google’s investment in this market. Launched in 2007, the program is currently used in over 150 million devices.

“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” said Google CEO Larry Page in a statement released by the search giant. “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.”

Google hopes to close the deal by the end of 2011 or early in 2012, after obtaining the regulatory approvals in the US, European Union and other regions, as well as the acceptance of Motorola Mobility’s shareholders.

(Featured Image Courtesy of Engadget.)

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Posted in: Global, National