James Delahunty
15 Aug 2011 7:54
Search giant agrees to buy Android partner for $40 a share.
Google Inc. and Motorola Mobility Holdings, Inc. announced this morning that Google will acquire its Android partner in a deal worth $12.5 billion. The board and directors of both firms unanimously approved the deal, which will see Google paying $40 a share, a 63% premium over the closing price of Motorola Mobility on Friday, August 12.
Motorola Mobility will remain a licensee of the Android operating system, and Google has said that the OS will remain open. It will run Motorola Mobility as a separate business. The deal is subject to shareholder approval, and will require some regulatory approval in the United States, the European Union and elsewhere.
The deal is expected to close by the end of the year, or possibly early 2012.
Larry Page, Chief Executive Officer, Google Inc.
"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, Chief Executive Officer, Motorola Mobility.
"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."