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August 15, 2011

TechMama News Tip: Google To Acquire Motorola Mobility

Breaking news this morning just popped up in my email: Google To Acquire Motorola Mobility. The Google blog posted this information in their press release:

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

Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. ..... I look forward to welcoming Motorolans to our family of Googlers.”

I have not been posting as much lately on my Typepad blog because I am in the middle of creating a new Wordpress blog that will be able to highlight breaking news (details coming out asap). But reading this juicy piece of techie news made it hard not to post right away... But what does this mean to consumers?

Motorola's Droid smartphone and Xoom tablet hardware lines use the Google Android operating system. Motorola is known for high quality hardware (but other manufacturers also have high quality smartphone hardware). Google makes the operating system that basically tells the smartphone hardware what to do. Google will run the unit as a separate business, but as a "Google" company will Motorola have more direct access to Android resources? The Google "Nexus" smartphone had this direct access and reviews described the phone as having the best Android experience and automatic updates. Maybe this will mean that a new line of smartphones will be released that have better Android operating system integration?

I do imagine that the other smartphone hardware companies running Android will become concerned - and hope that the Android Operating System eco-system will remain as open to all developers.

Tech4Moms commented on Twitter that it is all about the patent, and this CNET post agreed: Google just bought itself patent protection. TechMeme is abuzzin with posts about the Google aquisition of Motorola. My favorite tech blogger Eliane Fiolet from Ubergizmo posted with a great deal name: "Moogle and the Future of Mobile".

The fragmentation for Android devices make it harder for developers to code Android apps (i.e. different size handsets etc). Apple streamlined their iPhone hardware so developers have an easier time. Maybe this is a step to try to streamline the Android smartphone hardware as well?

Who knows? But I will be watching to see what new products come out of this acquisition. I wonder what my online community thinks of this news?

MOTOROLA PRESS RELEASE:

Press release from Motorola:

Google to Acquire Motorola Mobility


Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences


MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill. - Aug. 15, 2011 - Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility 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. The transaction was unanimously approved by the boards of directors of both companies.

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Larry Page, CEO of Google, 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.”

Sanjay Jha, CEO of Motorola Mobility, 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.”

Andy Rubin, Senior Vice President of Mobile at Google, 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


Webcast Information

Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live at https://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.

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I really have to admit it’s quite a novelty to arrive at a relatively ‘different’ blog like this, great job. I expect I’ll be coming back fairly soon and I look forward to reading your next post when I do.

Motorola's Droid smartphone and Xoom tablet hardware lines use the Google Android operating system. Motorola is known for high quality hardware (but other manufacturers also have high quality smartphone hardware). Google makes the operating system that basically tells the smartphone hardware what to do. Google will run the unit as a separate business, but as a "Google" company will Motorola have more direct access to Android resources? The Google "Nexus" smartphone had this direct access and reviews described the phone as having the best Android experience and automatic updates. Maybe this will mean that a new line of smartphones will be released that have better Android operating system integration?

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