8/15/2011 1:07:27 PM
Google to buy Motorola Mobility for £7.6bn
Google is set to buy Motorola Mobility for £7.6bn in a move that signals the company’s rising ambitions in the mobile phone space.
The offer exceeds Motorola Mobility's share price on 12 August by 63%, showing Google's determination to buy into the mobile phone market.
Google CEO Larry Page said the acquistion will not change Google's commitment to run Android as an open platform. Page added that the company remains committed to its other hardware partners. He said Motorola will remain a licensee of Android and it will be run as a separate business.
Page 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.'
Motorola Mobility CEO Sanjay Jha 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.'
Google's senior VP of Mobile Andy Rubin 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.