In a move that is not only borderline brilliant, but seen as a way to defend Android, the world’s #1 mobile operating system from patent trolls such as Apple and Microsoft, internet search guru Google has agreed to acquire Motorola Mobility. Lately, companies such as Apple and Microsoft, afraid of Google Androids’ rapid climb to success have been going after Android manufacturers in frivolous and practically baseless lawsuits to stop Androids’ rapid growth. It’s been happening so much lately that the slogan, “Why Innovate, Litigate“, has been born in reference to the ridiculous amount of patent lawsuits, showing up on wallpapers posted by users on such popular social networking sites as Google+ and Facebook. Here’s the full press release:
Google to Acquire Motorola Mobility
Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences
MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)–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.
“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.”
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.
Now, for those worrying(needlessly I might add) that Google buying an Android manufacturer would be a “blow to the egos” per se, to the other Android manufacturers, you needn’t worry. Google has stated that Android will remain open, and that Motorola will remain a licensesee of Android. Google will also run Motorola as a seperate company. This move helps protect Android from frivolous lawsuits, being that Motorola is one of the oldest, if not the oldest, cell phone manufacturer in the game, owning some 17,000 patents, with another 8,000 pending. Coupled with the 1000 or so patents Google just bought from IBM and Google is on the right path to defend itself. Maybe Motorola CEO Sanjay Jah’s veiled threat to sue Android manufactures spurred this on. Or maybe someone from Google was reading Staska’s blog on the Underwired View and got inspired. Who knows? I just know it was the move for Google and for Android.