Google Announces Plans to Acquire Motorola Mobility


Google Inc.’s $12.5 billion deal to buy cellphone maker Motorola Mobility Holdings Inc. is aimed at giving the Internet search leader more legal firepower as it battles Apple Inc.

Google announced early Monday morning that it will acquire the cell phone division and smartphone maker Motorola Mobility for $12.5 billion in cash.

Google CEO Larry Page wrote about the acquisition in a blog entry titled “Supercharging Android: Google to Acquire Motorola Mobility” in the official Google blog …

“This acquisition will not change our commitment to run Android as an open platform,” wrote Page. “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.”

Larry Page, CEO

Motorola announced that it would split into two companies in January 2011: Motorola Solutions, which manufacture tech products aimed at businesses and government, including public safety communications; and Motorola Mobility, which would focus on consumer technology, including wireless phone manufacturing.

Motorola Mobility is headquartered in Libertyville, Illinois. After introducing the StarTAC flip phone in 1996 in Motorola’s networks division known as Personal Communication Section (PCS), Motorola led the market in analog cell phone manufacturing. Motorola failed to lead in the switch to the digital market — falling behind Nokia and Samsung, and later Apple, Inc. In 2008, Apple’s iPhone led the Motorola RAZR in sales.

October 2009, Motorola announced the development of an Android OS smartphone named “Droid” that launched on the Verizon network on November 6, 2009. “Droid” was a major success for Motorola Mobile Devices. Motorola’s “Droid” received the prestigious “TIME Gadget of the Year” award in 2009. In 2010, Motorola launched “Droid X” and “Droid 2”. Droid X was a major success, which has helped Motorola to regain much of its market share in the United States. The Android Operating System — an open source cell phone operating system — was launched in November 2007.

Motorola also released the first Google Android 3.0 tablet, the Xoom Tablet on February 24, 2011.

More than 10% of all Google page views are happening on mobile devices.

The purchase of Motorola Mobility must be approved by federal regulators.

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