Google Spends 12.5 Billion Dollars Buying Motorola Mobile

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According to foreign media reports, Google and Motorola announced the move today that they have agreed to the agreement, Google will be spend 40 dollars in cash per share to buy Motorola mobile. The total transaction value will reach 12.5 billion dollars, according to Friday’s closing price. The purchase price premium will be over the share price of Motorola mobile 63%. This transaction has got the reach of board directors unanimously by Google and Motorola mobile.

The acquisition of Motorola Mobile will help Google to support Android ecosystem, and strengthen the competition in mobile computing. Motorola mobile will still remain authorized companies of Android, and Android will also remain open. Motorola Mobile will continue to operate as an independent business.

Google’s CEO Larry Page said: “The support for the Android system by Motorola mobile gives the two companies a perfect match. After the merger, we will bring a good user experience for the entire Android ecosystem to provide support and bring the benefit to the customers, partners and developers. Welcome the members of Motorola come into the Google’s ...
... family.”

Motorola Mobile CEO Jha said: “This transaction will provide shareholders with tremendous value for Motorola mobile, and bring new opportunities for our worldwide employees, customers and partners. We had has been with Google Android platform in promoting the partnership to achieve production, and now through this transaction, we will be able to conduct more cooperation with our mobile devices and home equipment business to innovate and introduce outstanding mobile solution."

Google’ senior vice president for mobile business Andy Rubin said: “We expect this merger will help us create a new world of Android ecosystem, but we have not changed the vision for Android, Google is still fully support Android as an open platform and an active community development resources. We will continue to work with all precious Android partners, develops and markets to innovative Android-based devices.”

Completion of the transaction must meet the statutory closing conditions, including the U.S., EU and other local regulatory approvals and the approval of the shareholders of Motorola’s mobile. The transaction is expected to be completed late in 2011 or 2012.

Some experts believe that this acquisition will probably be the model of cooperation between Microsoft and Nokia or even some other enterprises. However, we know IT field is always with a lot of variables. It is not easy through the acquisition to inform a new ecosystem.

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