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Google to Acquire Motorola for $12.5 Billion

Aug 15, 2011, 7:00 AM by Eric M. Zeman
updated Aug 15, 2011, 7:47 AM

Google and Motorola today announced that Google has agreed to acquire Motorola Mobility for $12.5 billion. Google believes that the acquisition will "supercharge" the Android ecosystem and allow Google to push Android in new directions. Motorola will continue to be a licensee of Google's Android software, and Motorola Mobility will be run as a separate unit. Google said that the Android platform will remain open. 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." During a conference call with media, Google also made note of the strength of Motorola's patent portfolio (more than 17,000 patents issued, 7,500 patents pending) as another key reason for acquisition. Google was recently squeezed out of a patent auction by rivals Apple, Microsoft, and RIM. The companies expect the deal to close late in 2011 or early 2012, pending federal review.

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Comments

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This forum is closed.

Rich Brome

Aug 15, 2011, 8:33 AM

Thoughts?

I'll be honest. I didn't see this coming. Anyone else?

Jayshmay

I first heard about it on the morning news, I was absolutly shocked! I'm curius if Motorola will keep their name.

...

kingstu

I was wondering how something big like this could happen without any leaks. Kinda like the AT&T T-Mobile Merger.

Kenzin

I could see this altering the lineup of devices Motorola will launch that get direct updates and support from Google. Much like the Nexus One got its SW updates. Google has kept a lid tight on this without leaks, who knows where they will take this!

bluecoyote

Although it may have been on the back room discussions at Google, As recently as a couple days ago Motorola was looking to 'differentiate' itself from other Android licensees and was actually going to wage war against the Android ecosystem:

http:// »...
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Daniel Dc5

I did not even have a hint about it. It makes sense that they would buy Moto. Everyone is after google because of its fast growth and exceptional services. This will help them make a lot more improvements to Android and bring them into the production ...
(continues)

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IrishCarBomb

to strengthen the Android patent portfolio and defense. I did not see Motorola coming by a long shot. I suspected they would go after smaller companies, likely hardware component manufacturers and designers, but not an entire mobile phone company li...
(continues)

Slammer

I envisioned a major purchase coming on the behalf of Google. However, this was not what I expected.

But to be honest, my main concern in all of this, is the extreme possibility that innovation can or will be temporarily stifled by moves like this...
(continues)

not pickles

I really didn't see this coming. I knew google was looking to acquire more patent rights, I never dreamed they would accomplish that by buying the mobility division of Motorola. Very, very interesting. Potentially a game-changer. They're going to have...
(continues)

bluecoyote

Aug 15, 2011, 3:25 PM

Stinks to be HTC, Samsung, LG, Sony Ericsson, Dell, etc...

The only good thing for these companies is Motorola's (ancient, keep in mind this company hasn't produced anything groundbreaking in nearly a decade) patent portfolio is a suitable defense. Considering they were already fighting a losing battle with Microsoft and Apple has plans in the works, it's probably only valid against Oracle (though don't expect Oracle to back down after the Rubin emails.)

But the bigger problem is that a hardware manufacturer now has inside access to Android's source code (Android isn't really 'open' , much of the source code remains proprietary.) This leaves manufacturers such as HTC and Samsung with no competitive leverage. As long as Motorola is under Google's umbrella, you'd better believe Google is going to t...
(continues)

tbacba

"keep in mind this company hasn't produced anything groundbreaking in nearly a decade"
Wrong -- see original Droid

"Android isn't really 'open' , much of the source code remains proprietary."
Wrong -- you may have mistaken Android for Apple ...
(continues)

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Mossberg

Aug 15, 2011, 10:57 AM

I wonder

if this will effect other manufacturers like HTC. Will the Google/Motorola mobile make Android exclusive to it's own hardware after this?

carmodboy99

Mossberg said:
if this will effect other manufacturers like HTC. Will the Google/Motorola mobile make Android exclusive to it's own hardware after this?

Naaa, Im sure there will be a few Android adopters butt hurt ...
(continues)

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Globhead

If Google wanted an exclusive deal on a manufacturer in exchange for a slightly larger cut of hardware profit, they already would have done it with HTC.

Google wants Android on as many phones as possible so people will use Google services and incre...
(continues)

IrishCarBomb

It will still be free and open source with the same terms and agreements for licensing it. This is mostly a move, IMHO, to strengthen Android against lawsuits, as well it is an area Google can make even more money.

But they have said the two compa...
(continues)

glinc

Aug 15, 2011, 8:55 AM

RIM Next

Google domination for this world will be buying RIM next and battle Apple and M$.

Mossberg

between good and evil

...

Red_Minx

Aug 15, 2011, 10:38 AM

OMG ITS HAPPENING!!!

GOOGLE = SKYNET!!! RUN!!! 😲

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