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Google Buys Motorola Mobility for $12.5B


Google made one of the largest purchases that it has ever made today with the announcement that it would be buying Motorola Mobility. Motorola has its fingers into all sorts of tech markets and Google is purchasing the mobility product segment only. This means that Google will own the OS with Android and will own the hardware design side of the operation too.

Motorola was one of the largest companies in the smartphone market with some of the most popular Android smartphones around. The deal will cost Google $40 per share at a cost that works out to to about $40 billion. That’s a 63% premium on the street price over Motorola Mobility share prices at the close of last week. The transaction has been approved by the board at Google and at Motorola.

The purchase still needs to be approved by the shareholders at Motorola. The purchase is also subject to regulatory approval and other closing conditions. Google hopes to have the purchase wrapped up by late 2011 or early 2012. Google will continue to make Android an open platform and Motorola Mobility will be a separately operated company.

Comments (1):

  1. peterw says:

    Google would own all of Motorola’s patents, and could license them to (or just share them with) other Android licensees if it wanted to. Motorola invented the cellphone almost 30 years ago, so this is worth a lot.

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