Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Google Buys Motorola for $12.5B

Google to directly produce Android phones, says system will remain open

By Kevin Spak, Newser Staff

Posted Aug 15, 2011 7:28 AM CDT

(Newser) – Google shocked the tech world this morning by announcing that it had a “definitive agreement” in place to buy Motorola Mobility for $12.5 billion or $40 a share—a 63% premium on Friday’s closing price. The move means that Google will for the first time be directly manufacturing Android phones, rather than simply licensing the operating system to others—though Google stressed that Android would remain an open platform.

“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” Larry Page said in a statement. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem.” Business Insider calls the deal a “game changer” that will put Google in more direct competition with Apple. It also notes that shares of RIM and Nokia are climbing in early trading, on speculation that Microsoft could be forced to buy one of them.

The Motorola Droid mobile phone is shown in this photograph in New York, Wednesday, Oct. 28, 2009. (AP Photo/Richard Drew)

« Prev« Prev | Next »Next » Slideshow

CLICK BELOW TO VOTE

20%

71%

To report an error on this story, notify our editors.

OTHER STORIES ON OUR RADAR

Getty Images

Man Goes to Hospital For Kidney Stone...Leaves a Woman (Huff Post)

Is Chase Crawford Dating a Cougar? (Bleacher Report)

My Boss Walked in on Me Touching Myself, Now He Won't Stop Flirting (Slate)

7 Gross Celebrity Items Sold at Auction (The Week)

The Lowest-Rated Show on TV Is Actually Awesome (Slate)

Partner Links

Sponsor Links

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

COMMENTS

Read the comment policy

Showing 2 of 5 comments

wwwonderer

Aug 15, 2011 10:20 AM CDT

So much for Consumer Confidence. I was wondering when we would see the AOL/Time-Warner-type deals again. The Adobe-buys-Macromedia, Google-buys-YouTube headlines have been at a low for a few years. IMO it's one of the signs of a thriving economy. And everyone is waiting to see what Apple does with its $70+ billion in cash reserves. Doesn't sound like certain companies are uncertain at all. Uncertainty my ass. If you want demand to rise get some people employed that can start making demands.

traxxion

Aug 15, 2011 9:03 AM CDT

Motorola have made a lot of good phones. Small problem I can see though, is that even a cursory interest in Motorola related forum topics reveals a consenus that their after sales support is absolutely dreadful and they consistently fail to deliver OS updates and fixes for issues which other vendors have provided. Not only do they fail to deliver, they completely ignore their customers. Not a particularly good reputation for the OS developer to inherit I would have thought??

What's Popular Now on Facebook

Japanese Artist Serves Up Own Cooked Genitals

Rape Conviction Cleared, Thanks to Facebook

Business Insider (Source Grid »)

Money • Technology

Google • Motorola • Motorola Mobility

More Newser Stories

Google Gets Europe's OK to Buy Motorola

But regulators in EU, United States will monitor for antitrust

(NEWSER) - Google's $12.5 billion takeover of Motorola Mobility Holdings, announced last August , finally cleared regulators in Europe and the United States yesterday, reports Reuters . But as Motorola owns so many patents that are vital to the telecommunications industry, regulators said they would monitor Google to ensure it continued to license that tech at fair prices. Google has said that a major reason for buying Motorola was to get its hands on Motorola's 17,000 patents and 7,500 patent applications. The deal is also Google's biggest venture into hardware yet. More»

Google Bought Motorola for the Patents

Firm seeks protection from intellectual property litigation: Kit Eaton

(NEWSER) - Google’s purchase of Motorola Mobility isn’t just about giving the company a seamless ability to blend hardware and software—it also buys Google a new set of patents, helping to shield it from Apple and Microsoft complaints about intellectual property infringement. Apple is already battling Samsung over the “theft” of its IP, and Microsoft has launched similar attacks on makers of Android devices. “By grabbing Motorola,” writes Kit Eaton at Fast Company , “Google's certainly gained access to more patents to shore up its Android patent portfolio and thus enable it to counter (and respond with counter suits) any future IP threats.” More»

China Clears Google's Motorola Takeover

China was last regulatory hurdle to $12.5B buyout

(NEWSER) - Google's $12.5 billion bid for Motorola got the OK from Chinese authorities yesterday, the last regulatory obstacle in the online giant's quest to move into mobile phone production, reports Reuters . A condition for China's approval requires Google to keep its Android software free and open for at least five years. More»

Germany Bans Xbox, Windows 7

But Microsoft says it doesn't have to pull products yet

(NEWSER) - If you live in Germany and you like Microsoft products, you may want to stock up: A court ordered today that Microsoft remove Xbox 360 and Windows 7 from shelves, after ruling that Microsoft had infringed on Motorola Mobility's patents. But nothing will be pulled yet, Microsoft says, because it has been granted a preliminary injunction against Motorola, preventing Motorola from enforcing the German court order. More»

Stocks Shoot Up at Open

Dow sees triple-digit rise

(NEWSER) - Is the panic over on Wall Street? The Dow shot up around 131 points, and the S&P and Nasdaq were up 13.5 and 26.2 as of 9:39am EST. Part of the gain came from Google’s blockbuster acquisition of Motorola , which sent the latter’s stock up 60%, according to the Wall Street Journal . Traders were also watching two other major deals—Time Warner is reportedly close to an agreement to buy Insight Communications, and Bank of America sold its credit card portfolio to Toronto-Dominion Bank. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Google Buys Motorola for $12.5B

Google to directly produce Android phones, says system will remain open

OTHER STORIES ON OUR RADAR

Google • Motorola • Motorola Mobility

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Google Gets Europe's OK to Buy Motorola

But regulators in EU, United States will monitor for antitrust

Google Bought Motorola for the Patents

Firm seeks protection from intellectual property litigation: Kit Eaton

China Clears Google's Motorola Takeover

China was last regulatory hurdle to $12.5B buyout

Germany Bans Xbox, Windows 7

But Microsoft says it doesn't have to pull products yet

Stocks Shoot Up at Open

Dow sees triple-digit rise

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?