Google stunned the mobile and tech industries last night (Monday morning, 15 August US time) with the news that it has agreed to purchase Motorola Mobility.
Google Inc. and Motorola Mobility Holdings, Inc. announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for a total of about $12.5 billion.
A joint statement said transaction was unanimously approved by the boards of directors of both companies, which should be completed by the end of this year, or early next year.
Experts say Google’s purchase is aimed at ‘creating its own device brand to compete with Apple’ and defending itself and its partner firms from lawsuits over the Android operating system.
Meanwhile, Google insisted that Motorola will continue as a separate company and that Android will remain an open platform.
Google’s CEO Larry 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.”
CEO of Motorola Mobility, 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.”