Google has just announced that it is acquiring one of the biggest names in the mobile phone industry and one of pioneers in the telecommunications space – Motorola Mobility for $12.5 billion. Google will continue to operate Motorola Mobility as a separate entity. The deal is still pending regulatory approval considering the sheer size of the transaction and is expected to be completed in 2011 end or early 2012.
Investor Call Live Blog
2011-08-15T13:06:04 Dear FoneArena readers .. thanks for tuning in 2011-08-15T13:03:53 Ladies and Gentleman you may now disconnect and have a wonderful day ! 2011-08-15T13:03:34 We want to thank all the employees at Google and Motorola Mobility for all their hardwork 2011-08-15T13:03:00 We are very excited about the opportunities going forward 2011-08-15T13:02:23 Android is growing like crazy 2011-08-15T13:02:12 #larry page final word . We at Google at very excited about this 2011-08-15T13:01:52 A. We will continue to build patent potfolio 2011-08-15T13:01:36 Q about patent portfolio again and strategy going forward 2011-08-15T13:00:24 There is a transition from Settop box to IP world 2011-08-15T12:59:49 Ans:We are really excited to work with Motorola 2011-08-15T12:59:31 Q : Hardware strategy and how patents will help . 2011-08-15T12:58:11 Talk about Nexus Program right now 2011-08-15T12:56:37 Ans: We will be in good position to defend Android and all the partners and ecosytems 2011-08-15T12:55:40 Question : Legal ramifications and how Price of deal is fixed 2011-08-15T12:54:58 Answer : this is pro competitive deal. Will require approval in USA and Europe 2011-08-15T12:53:57 Question about FCC and regulatory issues with deal 2011-08-15T12:52:29 #Larry – no change in how we run android. Our partners are excited about it 2011-08-15T12:52:08 How do you think this changes the overall mobile ecosytem 2011-08-15T12:51:15 Question about some financials and licensing fees 2011-08-15T12:50:22 #Larry – really excited about this deal 2011-08-15T12:49:11 Q.What convinced about acquiring Motorola Mobility 2011-08-15T12:48:42 and they seemed very enthusiastic about the deal 2011-08-15T12:48:27 spoken to top 5 android licensees 2011-08-15T12:48:12 question about discussion with other android partners 2011-08-15T12:47:41 we would be able to support Motorola mobility and android ecosystem better 2011-08-15T12:47:14 #sanjay jha of motorola we have over 17K patents worldwide and over 7.5k patents pending approval 2011-08-15T12:45:46 calls are dropping in the conference call #early morning troubles lol 2011-08-15T12:44:45 2nd question from Credit Suisse 2011-08-15T12:44:35 The first question was about the legal stuff surrounding android and it just got interrupt 2011-08-15T12:43:27 Its Q&A time now 2011-08-15T12:42:45 We will run motorola as a separate business 2011-08-15T12:42:36 The transaction was approved by board of directors of both the companies 2011-08-15T12:42:21 Google to acquire Motorola for $40 per share 2011-08-15T12:41:26 Top 2 android makers in China 2011-08-15T12:41:11 in US we have strong relationship with Verizon , AT&T , Sprint 2011-08-15T12:40:53 we committed to android in 2008 2011-08-15T12:40:32 our relationship with android began years ago 2011-08-15T12:40:20 to take cutting edge products to next level 2011-08-15T12:39:51 Good morning from Sanjay Jha
Here are the quotes from other Android handset makers
“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”
– Peter Chou
CEO, HTC Corp.
“I welcome Google‘s commitment to defending Android and its partners.”
– Bert Nordberg
President & CEO, Sony Ericsson
“We welcome Google‘s commitment to defending Android and its partners.”
– Jong-Seok Park, Ph.D
President & CEO, LG Electronics, Inc.
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User ExperiencesMOUNTAIN VIEW, CA and LIBERTYVILLE, IL – AUGUST 15, 2011 – 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.
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.