Google Announces Plans to Acquire Motorola Mobility

Tweet

The week is barely underway and it looks like Google has already dropped a rather big bombshell. One that is sure to make many wonder what the eventual outcome will be — Google is acquiring Motorola Mobility.

According to the terms of the deal, Google will be shelling out about $12.5 billion. Or more specifically, the terms of the deal call 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.” And at this time it was noted that the transaction was “unanimously” approved by the board of both companies.

Furthermore, Google has made mention that the purchase of Motorola Mobility will be to help “supercharge” Android and help to “enhance competition.” For those wondering how well this will work, additional details have stated that;

Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

All said and done, while probably still a bit early to make a decision, this sounds like it will be a win-win situation for both Google and Motorola Mobility. Of course, the real question will come for companies like HTC and Samsung who have both been key device partners in the past. Samsung has the Nexus S and HTC managed to release the original G1 to kick things off as well as release the original Nexus One.

Lastly, while both company boards approved the acquisition, this is all still subject to regulatory approvals and is expected to be approved and finalized relatively quickly.

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.