Google Buys Motorola for $12.5B
Google to directly produce Android phones, says system will remain open
By Kevin Spak, Newser User
Posted Aug 15, 2011 7:28 AM CDT
The Motorola Droid mobile phone is shown in this photograph in New York, Wednesday, Oct. 28, 2009.   (AP Photo/Richard Drew)

(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.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Google Buys Motorola Mobility for $12.5B is...
Show results without voting
You Might Like
Showing 2 of 5 comments
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.
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??