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Breaking News: Google to Acquire Motorola Mobility, Enabling Android to "Break New Ground"

post #1 of 8
Thread Starter 

Holy shit. I think this is the biggest tech news in a long time. Google just bought Motorola Mobility for 12.5 billion dollars. Here's the press release:

 

 

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. – Aug. 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

Webcast Information

Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live athttp://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.

About Motorola Mobility
Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.

 

And here are two links discussing it. Chime in guys, I want to know what you think of this.

http://www.droid-life.com/2011/08/15/initial-reaction-and-thoughts-on-googles-acquisition-of-motorola/

http://www.droid-life.com/2011/08/15/google-to-acquire-motorola-mobility-enabling-android-to-break-new-ground/

 

To me, I think this is amazing good news for the Android world. If Google was not a super-power in the mobile world before now, they sure as hell are now!

 

post #2 of 8

Yeah this is a big deal. There's one analyst out there speculating that Google will have a closed Android based eco-system, a la Apple, in 2-3 years time. Which means there's a need in the market for a new, true Open Source Mobile platform. It also shows that Google is serious about not being a one trick pony.

 

The question is, will the acquisition take so many resources that it will bog the company down? I don't see Google laying off employees left and right (at least not yet), and sadly, that's the best way to make an acquisition of this scope work.

post #3 of 8

Well you gotta break ground when you want to get something out of a grave.

post #4 of 8

With the rumors floating around that Google is very interested in Steve Perlman's DIDO system and it's own well publicized broadband initiatives (albeit small as they may be right now) I just have to wonder if this acquisition is a sign that Google is working on something really big.  They have the OS (Android) and they now have a hardware and design asset (Moto Mobility) that not only is in handsets but broadband tv and video via it's home business unit.  The only thing they're really missing at this point is a major Telecomm asset but the success of Google Voice has kind of made that a moot point.  I just don't buy the "we're buying this for patent protection" smokescreen.

 

What I'm thinking is that Google (and this may be 10-15 years down the road) is going to create it's own  ultra high speed broadband infrastructure compatible only with Android powered devices (tablet, mobile, tv, computer..hell maybe even your vehicle) that will handle all voice and data needs via the net.  Which is why I think in the end Apple is going to lose this "war" the media's helped create and fanboys seem to love to sign up to serve in the trenches. Not because IOS doesn't do a great job (it does) or that Jobs and Co. aren't innovative or stylish (they may be kind of prickish now but they do have some cool consumer products) but at the end of the day they're still going to be just a consumer electronics company at the mercy of ISP's and Telecom's to provide service and infrastructure for their products.

post #5 of 8

That's a really intriguing idea. Google did try to create and run free Wifi networks in a couple of major cities like San Francisco and Seattle. SF's city government in its' infinite wisdom shot down the idea, thinking they could do it themselves! (no idea what happened or didn't with Seattle). So there is precedent.

 

The problem Google faces is they are about to acquire tens of thousands of employees who are not part of the "Google Ethos". Googlers are notorious for worshiping IQs, and where you went to college (hint: Stanford and Harvard). Plus they have a culture that encourages innovation and taking chances, all antithetical to Motorola. And Google has no history of massive layoffs.

post #6 of 8
Quote:
Originally Posted by SAIRUS View Post

Well you gotta break ground when you want to get something out of a grave.



I'm assuming you mean the shitty state of Motorola and their product line-up and not some jab at Android, yes?

post #7 of 8
Quote:
Originally Posted by Bancroft Agee View Post

With the rumors floating around that Google is very interested in Steve Perlman's DIDO system and it's own well publicized broadband initiatives (albeit small as they may be right now) I just have to wonder if this acquisition is a sign that Google is working on something really big.  They have the OS (Android) and they now have a hardware and design asset (Moto Mobility) that not only is in handsets but broadband tv and video via it's home business unit.  The only thing they're really missing at this point is a major Telecomm asset but the success of Google Voice has kind of made that a moot point.  I just don't buy the "we're buying this for patent protection" smokescreen.

 

What I'm thinking is that Google (and this may be 10-15 years down the road) is going to create it's own  ultra high speed broadband infrastructure compatible only with Android powered devices (tablet, mobile, tv, computer..hell maybe even your vehicle) that will handle all voice and data needs via the net.  Which is why I think in the end Apple is going to lose this "war" the media's helped create and fanboys seem to love to sign up to serve in the trenches. Not because IOS doesn't do a great job (it does) or that Jobs and Co. aren't innovative or stylish (they may be kind of prickish now but they do have some cool consumer products) but at the end of the day they're still going to be just a consumer electronics company at the mercy of ISP's and Telecom's to provide service and infrastructure for their products.

 

I seriously doubt it.  The patent protection "smokescreen" is only hiding one thing and that is Google's interest in the set-top division so they can hopefully get Google TV correct the second time around.

 

They got shot in the foot with the Nexus sales platform and even a decade from now I highly doubt they will move into the carrier market with an Android only infrastructure.
 

 

post #8 of 8
Quote:
Originally Posted by TzuDohNihm View Post



 

I seriously doubt it.  The patent protection "smokescreen" is only hiding one thing and that is Google's interest in the set-top division so they can hopefully get Google TV correct the second time around.

 

They got shot in the foot with the Nexus sales platform and even a decade from now I highly doubt they will move into the carrier market with an Android only infrastructure.
 

 




The Nexus sales platform was an experiment (like a lot of thing that Google does) and it failed mainly because of shitty customer sales and support staffing..and I think that was really the purpose behind it to begin with; to see how it worked and if they could make it work without the traditional service and sales infrastructure that consumer electronic companies rely on.  And I'm willing to wager that if anything gets spun off from the Moto Mobility acquisition it's the Home division.

 

Google bid on the spectrum that Verizon ended up acquiring. They've done/are doing a couple of small scale ventures in high speed broadband (which I'm willing to bet are another one of their "experiments") and they've bought up fiber assets left and right over the last 5 years.  It just fits that they're building to something larger.

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