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More Heat On iPhone As Google Acquires Motorola Mobility For $12.5 Billion

Tyler Durden's picture




 

Why did Google just pay a 60% premium for MMI? One word: iPhone - "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....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."

From the release:

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.

 

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Mon, 08/15/2011 - 07:40 | 1560937 Josh Randall
Josh Randall's picture

D@mn snoops - more electronic dog tags for us all

Mon, 08/15/2011 - 08:06 | 1561005 spiral_eyes
spiral_eyes's picture

heat on iphone shit tyler,

apple joined the chinese communist party a long time ago. those west coast liberals love chairman mao, and the confucians love monopolies, especially those with fascist tendencies. they ain't red shirts or brown shirts they're blue shirts.

http://azizonomics.com/2011/08/02/foreign-policy-apple-acts-like-the-chinese-communist-party/ 

Mon, 08/15/2011 - 08:54 | 1561126 In Fed We Trust
In Fed We Trust's picture

So I read the Drudge today that BART if San Fransisco us banning all cell phone usage from the train system.

May I ask how the public is suppose to notify the ploice next time some terrorists board the the train with box cutters?

Maybe they should make an iPhone app that acts like a tazer!!

Mon, 08/15/2011 - 07:40 | 1560940 Ray745
Ray745's picture

Motorola has 4 times as many patents as Nortel had (many of them dealing with 4G), and Nortel sold those for 4.5 billion.  Google needs patents to defend itself from the litany of lawsuits that Android is getting, Motorola was the quickest and easiest way for Google to do that.

Mon, 08/15/2011 - 07:45 | 1560948 ZeroPower
ZeroPower's picture

Anyone see anything interesting last week in Motorola options?

Mon, 08/15/2011 - 07:46 | 1560950 speconomist
speconomist's picture

Anyone else feeling curious about Reggie's take on this?

Mon, 08/15/2011 - 07:48 | 1560951 falak pema
falak pema's picture

where is RM to give us his low down on this!

All Apple fans to manning stations, calling all Apple fans to mannng stations...

Mon, 08/15/2011 - 08:55 | 1561129 jimijon
jimijon's picture

You called?

Now what are all the droidboys gonna say? Is HTC gonna be happy? I played with a XOOM... way to heavy with sharp edges running a cranky OS. Galaxy 10.1... much nicer feel... same shitty OS... things crash.. never know where to touch.

So I say... this is great. Let the competition commence and let's see how the GOOG does competing in hardward. I am sure Reggie will say this is great for Android, Google's margins and is bad for Apple and Apple's margins.

Cheers

Mon, 08/15/2011 - 10:44 | 1561468 rassillon
rassillon's picture

"never know where to touch."

LOL that is what your girl said about you....

Mon, 08/15/2011 - 07:48 | 1560955 smlbizman
smlbizman's picture

i know..ot....but if roger altman had a little black mustache......

Mon, 08/15/2011 - 07:51 | 1560961 wang (not verified)
wang's picture

google the great satan

 

should be good for RIMM LOL

Mon, 08/15/2011 - 07:51 | 1560962 chump666
chump666's picture

using the xoom tablet right now.  solid tech...i dig it

Mon, 08/15/2011 - 07:52 | 1560964 Gmpx
Gmpx's picture

Smartphones are getting smater than their owners.

Mon, 08/15/2011 - 08:00 | 1560985 pan
pan's picture

No need to learn objective C bitchez!

Mon, 08/15/2011 - 08:05 | 1560993 YHC-FTSE
YHC-FTSE's picture

That makes sense. Motorola's latest Android tablet is worth every penny. Saw it in the shops (before the London riots), and it was far superior (and smaller) than the Apple. 

 

When it comes to price, marketing, and plagiarized innovation, Apple is a ripe cunt. They are currently preventing the Samsung Galaxy 10.1 Android tablet from the European market because it looks similar, and has a touchscreen interface (So does every other tablet and Apple didn't invent that). The thing about Jobs is that he is a plagiarizing liar, but a good designer and marketing genius. The GUI interface was not invented by Apple, it was invented by Xerox. The tablet PC has been around in various guises for over 10 yrs. And the touchscreen technology was invented by E.A. Johnson in 1967 and various versions have been in use for ATM machines for decades. Samsung should be able to sue Apple for billions.

Mon, 08/15/2011 - 09:10 | 1561165 falak pema
falak pema's picture

Point taken. I loved Apple's historically contrarian style, think different etc, when they were tiny. And its capability to produce total seamless user friendly, aestheically innovative technology. It has been in  a class of its own. Now that it's in Microsoft's spot as WS top dog, I am distancing myself with this emotional attachment to Apple. Although I still love its toys. You are right about Xerox and GUI but Steve Jobs did use the concept very originally with Macintosh. The rest, the stuff on Samsung is news to me and looks like typical Oligarchy play à la Microsoft and Windows/Internet Explorer days.

So let the games begin! Is all I can say!

Mon, 08/15/2011 - 10:10 | 1561359 privatebanker55
privatebanker55's picture

Agree totally with the sentiment that Apple was the little orphaned genius with great products in the market and rolled out more in a long string of hits since ipod and itunes. Now its all "growed up" and then some. No more sympathetic feeling for principled loner who wouldn't want to try to control the world.  These mega companies are all now the new big brother......they will know more about us than we'll be conscious of ourselves. That's the way we'll be controlled in some sort of Macchiavellan future....we will be led to desire things and construct our past times around some set of gadgetized value system.

Mon, 08/15/2011 - 14:31 | 1562401 YHC-FTSE
YHC-FTSE's picture

Yep. I pretty much agree with everything you wrote, but never had any love for Apple because half the fun of computers for me was the tinkering, and the ability to do so much more cheaply or even free with a pc. The Apple i-products are superbly integrated and pretty to look at, but innovative? No way. It really pissed me off when i-pod stole the compressed media player idea (Cheap solid state MP3 players were around years before the first ipod), and pretended to have invented it, just like everything else they come up with. 

It's a bit like Orwell's Animal Farm as soon as the so-called little guys make it to the top isn't it?

(Just realized I wrote interface twice. Duh)

Mon, 08/15/2011 - 08:12 | 1561013 cowdiddly
cowdiddly's picture

Ecosystem is a little rich. there is nothing green or positive for the planet with consumerism.

Mon, 08/15/2011 - 08:11 | 1561018 Freewheelin Franklin
Freewheelin Franklin's picture

supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.

 

Wow. Creating products that people want to buy and creating jobs. Imagine that. It's good to know that there's at least some real wealth creation going in this economy.

Mon, 08/15/2011 - 08:15 | 1561023 jubispupper
jubispupper's picture

Obamarama and team better change the anti-trust laws to prevent the merger!

Mon, 08/15/2011 - 08:21 | 1561036 Cursive
Cursive's picture

I look forward to welcoming Motorolans to our family of Googlers.

Ah carumba.  Sounds like something a Federation ambassador would say on an old Star Trek episode.  The nerds really are in charge and it's frightening.

Mon, 08/15/2011 - 09:54 | 1561295 Agent P
Agent P's picture

First laugh of the week...thank you.

Mon, 08/15/2011 - 10:08 | 1561349 Tejano
Tejano's picture

Nerds having amazing user experiences (nerd orgasm?) staring into their little nerd toys oblivious to creation. Not so much frightening as sad.

Mon, 08/15/2011 - 08:27 | 1561047 firstdivision
firstdivision's picture

Excellent move, and was rather anticipated after Apple bought Nortel. I'm tired of Apple being a whiney little bitch. As someone above me noted, Apple didn't really create a revolutionary idea, as mush as just add a few things to existing ideas.

Mon, 08/15/2011 - 08:58 | 1561140 jimijon
jimijon's picture

Yes and Google is so inventive... First search engine.. oh wait... first smartphone ... oh wait... 

Now they are revving up their 3DCopiers to copy Apple.

This will be an excellent battle and as much as i love ObjectiveC and iOS and am now slogging my way through Javascript trying to create a more cross-platform app, it will be good for us all as everyone will push Apple to achieve even greater accomplishments.

Mon, 08/15/2011 - 09:13 | 1561181 firstdivision
firstdivision's picture

Please explain where anywhere in my statement I say that Google was inventive?

This will only push Apple huh? Harry, is that you?

Mon, 08/15/2011 - 09:26 | 1561220 3.7.77
3.7.77's picture

"as mush as just add a few things to existing ideas".

Be glad they have, and done well.


Otherwise you could still be using DOS or maybe Win3.1.


Mon, 08/15/2011 - 08:28 | 1561049 s2man
s2man's picture

Great.  I work for a telecom.  Now I am in competition with Google. 

Mon, 08/15/2011 - 08:41 | 1561080 b_thunder
b_thunder's picture

Google doesn't know diddly squat about industrial design, which is what (used to) makesiPhone stand out.  I do not see Goog/MMI beating AAPL in that area.  On the other hand, this clearly creates "preferred" hardware maker, which may put HTC, Samsung, etc at a disadvantage. 

Goog is goign where they have no business going. 

Mon, 08/15/2011 - 09:14 | 1561186 trav7777
trav7777's picture

Samsung already has better hardware in their sets than the others, as does HTC.  They will just partner with MS and produce phone7 handsets.  Having been a smartphone user since years before the iPhone, I never thought I'd say this but the latest MS smartphone OS is stupidly good.  Samsung's oled screens are also best in class; they had more orders than they could fulfill

Mon, 08/15/2011 - 09:30 | 1561235 3.7.77
3.7.77's picture

More orders than they could fill is not unusual for the business, especially given their previous success.<sarc>

 

 

Mon, 08/15/2011 - 11:45 | 1561684 ZeroPower
ZeroPower's picture

Right on. Ive been giving my money to jobs and every single iteration of the iphone, cant say its a bad device, but am definitely ready for a switch. The second the W7 phone can incorporate a decent music service a la itunes on the computer, ill finally make the switch. Well, assuming the hardware isnt a POS either.

Mon, 08/15/2011 - 08:51 | 1561115 Zone1
Zone1's picture

Google really knows how to piss off most of their customers. Why would HTC, Samsung, etc stay with making Android phones now? This is positive for Microsoft and Windows Phone.

Mon, 08/15/2011 - 10:51 | 1561491 Prescient_Point
Prescient_Point's picture

What about Nokia's nuptial with Microsoft? So Samsung was not stupid.... They had their own OS called Bada. But it is still too backward compared to Android. Interesting to see how this develops. I thought RIMM would be a target for Google. But Motorola is a surprise.

Mon, 08/15/2011 - 09:12 | 1561177 fatsak
fatsak's picture

This is the start of an acquisition spree particular in tech.    The Fed basically said they will tax cash until at least 2013, and big tech has loads of cash.   I wouldn't be surprised to see MSFT or AAPL buy YHOO.

Mon, 08/15/2011 - 09:33 | 1561241 theotheri
theotheri's picture

I'm reading this blog post on my snappy new Bold 9900 from RIM. So what you what about their technology but I absolutely love this device. It's the best keyboard on the planet and RIM still crushes it with email/contacts/calendar functionaility.

They may be losing marketshare to iOS and Android but they still have an ultra strong core business/corporate market.

Mon, 08/15/2011 - 10:28 | 1561409 CEOoftheSOFA
CEOoftheSOFA's picture

Now Google is in competition with their customers and partners.  Not a good idea. 

Mon, 08/15/2011 - 13:18 | 1562054 pasttense
pasttense's picture

Almost all the big tech firms are in this position. For example would you say that Microsoft and Apple are competitors?

Yes? Then naturally Microsoft Office is not going to be available for Apple machines.

But in fact it is.

Mon, 08/15/2011 - 10:38 | 1561446 sunkeye
sunkeye's picture

this is so far over my head im at the bottom of the ocean but what does standout for an old timer user but certainly not techie is that this topic speaks of apple and google w/ no mention of microsoft

in days of old seemed any big tech news included the words either apple or microsoft

now big news still includes the word apple but not microsoft anymore

Mon, 08/15/2011 - 11:07 | 1561545 ElvisDog
ElvisDog's picture

The only industry that MS dominates now is gaming software with the Xbox. The PC market is shrinking or stagnant at best. They are reactionary when it comes to phones, tablets, search engines, cloud computing and almost everything else. It's no wonder their stock price has gone essentially nowhere for the past 10 years.

Mon, 08/15/2011 - 11:57 | 1561725 Elooie
Elooie's picture

Everyone that things google bought Motorola to take over the handset business is completely missing it.  They just dropped billions to get all of their patents to end all of the stupid patent infringement lawsuits that Apple/Microsoft/Oracle are filing.  The Samsugn Galaxy Tablet is a fine alternative to the IPad and actually has gotten better reviews from some people.  It is in the process of getting blocked out of Europe and was already banned in Austraila. Some of the Patents that Motorola have can basically block any release of the IPhone. Motorola was the only device maker not being attacked (exactly for these reasons). This was a big FU to Apple/Microsoft/Oracle. This brings everyone back into an equilbrium ala Cold War /Mexican Standoff.  

Sat, 08/27/2011 - 07:03 | 1606974 Silvan0
Silvan0's picture

They just dropped billions to get all of their patents to end all of the stupid patent infringement lawsuits that Apple/Microsoft/Oracle are filing. The Samsugn Galaxy Tablet is a fine alternative to the IPad and actually has gotten better reviews from some people. travesti

Mon, 08/15/2011 - 17:26 | 1563038 SmittyinLA
SmittyinLA's picture

Imagine the synergy if Google were to buy Cisco and open up all those home routers to a gray market untaxed and unregulated cellphone market, ATT and Apple would be toast, then they could digest the dying carcass of Microsoft.

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