Google to Acquire Motorola Mobility for $12.5 Billion

By   Ville Heiskanen -Aug 15, 2011 8:35 PM GMT+0800

Google Inc. (GOOG), maker of the Androidmobile-phone software, agreed to buy mobile-phone maker MotorolaMobility Holdings Inc. for $12.5 billion, gaining wirelesspatents and entering the hardware business in its biggest deal.
Motorola shareholders will get $40 a share in cash, thecompanies said in a statement today. That’s 63 percent more thanMotorola Mobility’s closing price on the New York Stock Exchangeon Aug. 12. Both boards have approved the deal.
Google, whose Android software runs mobile phones made byMotorola Mobility and companies such as Samsung Electronics Co.,gains patents it needs to compete against Apple Inc.’s iPhone.The deal -- the largest wireless equipment deal in at least adecade, according to data compiled by Bloomberg -- also makesGoogle a competitor to most of the handset makers that useAndroid.
“This combination will enable us to break new ground forthe Android ecosystem,” Andy Rubin, a Google senior vicepresident, said in the release. Android, which Google gives awayfor free, will remain available to other manufacturers, he said.
Motorola Mobility, based in Libertyville, Illinois, rose asmuch as $15.03, or 61 percent, to $39.50 in early trading afterclosing at $24.47 on the New York Stock Exchange on Aug. 12.Google, based in Mountain View, California, fell as much as$18.78, or 3.3 percent, to $544.99 after closing at $563.77 onthe Nasdaq Stock Market. InterDigital Inc., owner of mobile-phone patents that’s considering a sale, fell as much as $17.67,or 23 percent, to $58.05.
End for Pioneer Android was the best-selling smartphone operating system inthe second quarter as sales rose more than fourfold to 43.3percent of the market, led by Samsung and HTC Corp., accordingto research firm Gartner Inc. Apple Inc. (AAPL) had an 18.2 percentshare, the researcher said. While Motorola Mobility’s Droidphone have found a following in the U.S., globally the companyranks outside the top players in the smartphone market.
The deal marks an end as an independent company for acompany that helped pioneer mobile phones and introduced itsfirst consumer handset in the early 1980s.
Motorola announced a plan to spin off its mobile-phonebusiness in March 2008 amid market share losses and pressurefrom activist investor Carl Icahn. The company then delayed themove amid the global recession before completing the split inJanuary. Motorola Inc. became Motorola Solutions Inc., whichmakes radio equipment to emergency workers and scanning devicesfor retailers.
Last month, billionaire Icahn urged Motorola Mobility toexplore alternatives for its patent portfolio after NortelNetworks Corp. sold wireless-technology intellectual propertyfor $4.5 billion.
Since the January spinoff, Motorola Mobility shares havelost about a fifth of their value as the company has struggledto return to profitability and keep pace with larger rivals suchas Samsung and Apple.


google收购了moto，智能手机是不是要开始三足鼎立了呢？