Android Supercharged: Google To Acquire Motorola Mobility For $12.5 Billion

Boom bang! Motorola Mobility, one of the oldest telecommunications company, is all set to be acquired by Google. For a neat sum of $12.5 Billion, viz., $40/share, that is.

Why?

Motorola has got a very healthy patent portfolio, standing at 17,000 odd at the last count. About 7,500 patent applications were pending approval, as well. Compare this to Nortel’s portfolio of about 6,000 patents and the bid amount of $4.5 Billion, Google has paid around 3 times the price and 3 times the number of patents. Proportional, and this sounds really, really good for Android’s future, assuming Google does not push away other OEMs, i.e., Samsung, HTC, LG etc.

Here’s a quote from the official Google blog post, by Larry Page, the CEO –

Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the remarkable revolution in mobile computing we are all enjoying today. Its many industry milestones include the introduction of the world’s first portable cell phone nearly 30 years ago, and the StarTAC—the smallest and lightest phone on earth at time of launch. In 2007, Motorola was a founding member of the Open Handset Alliance that worked to make Android the first truly open and comprehensive platform for mobile devices. I have loved my Motorola phones from the StarTAC era up to the current DROIDs.

In 2008, Motorola bet big on Android as the sole operating system across all of its smartphone devices. It was a smart bet and we’re thrilled at the success they’ve achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth.

And this, about the commitment to keep Android as an Open Platform –

This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.

And now for the comments from Nokia, Samsung, HTC, LG and Sony Ericsson:

Samsung

“We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”

Sony Ericsson

“I welcome Google‘s commitment to defending Android and its partners.”

HTC

“We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

LG

“We welcome Google‘s commitment to defending Android and its partners.”

Nokia

“This further reinforces our belief that opportunities for the growth of Nokia’s smartphone business will be greatest with Windows Phone. This could prove to be a massive catalyst for the Windows Phone ecosystem. Additionally, with our respective intellectual property portfolios, Nokia and Microsoft are working together to build and nurture an innovative ecosystem that benefits consumers, operators, developers and other device manufacturers.”

In the meanwhile, Nokia’s shares have jumped by about 11% since the acquisition news broke.

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