On August 15, Google announced an agreement to acquire Motorola Mobility, based in Libertyville, Illinois, for $40 per share. Both companies’ boards of directors have approved the deal.
Benefits of the deal
Google and Motorola Mobility together will accelerate innovation and choice in mobile computing. Consumers will get better phones at lower prices. Motorola Mobility’s patent portfolio will help protect the Android ecosystem. Android, which is open-source software, is vital to competition in the mobile device space, ensuring hardware manufacturers, mobile phone carriers, applications developers and consumers all have choice.
Why Motorola Mobility?
• Motorola Mobility’s full commitment to the Android operating system means there is a natural fit between our companies.
o Motorola Mobility was a founding member of the Open Handset Alliance in 2007.
o Motorola Mobility in 2008 made a big bet on Android as the sole operating system for all its smartphone devices.
• Google is great at software; Motorola Mobility is great at devices. The combination of the two makes sense and will enable faster innovation.
• Motorola Mobility has a long history of innovation in communications technology and the development of intellectual property.
o 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 in the world when it was launched.
Motorola represents one of the thorniest strategic and operational challenges in Google's 14-year history. Oddly, few seem to be paying attention.
When investors parsed Google's deal announcement in August, they focused on how Motorola's 17,000 patents will protect Google's market-leading Android mobile operating system from legal assault.
But what of the 20,500 Motorola employees working in 92 major facilities across 97 countries, from Horsham, Pa., to Jaguariuna, Brazil? What of the... [continues]
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