Google Will Own Motorola Mobility for $12.5 Billion

By Kenna McHugh Comment

Google has decided to buy phone hardware maker Motorola Mobility Holdings for $12.5 billion in cash to reinforce its intellectual property and placing itself directly into the handset business of its Android mobile software.

Google is set to pay $40 per share, a 63 percent premium to Motorola Mobility’s Friday closing price on the New York Stock Exchange. The deal will close at the end of this year or early 2012.

One can easily assume that the omnipresent internet company wants to provide a total experience that’s not only hardware but software as well, mirroring Apple.

The maker of the Android mobile phone operating system software has been shaping its future in the smartphone market. Until today, Google has been held back by manufacturing its own direct influence in the mobile intellectual property. Sure we are familiar with the company’s few trial models with mobile partners such as HTC and Samsung Electronics.

Google even lost its attempt to bid for thousands of patents from bankrupt Nortel. But, Google claimed Apple, Oracle and similar companies conspired together to impede the purchasing of buying up patents. It looks like Google showed them and bought one of the most acceptable mobile products to date.

Google will run the Motorola Mobility as a separate business. Andy Rubin senior vice president of mobile at Google told CNET, “Our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community.”

Rubin also says that Google plans to continue to work with all their “valued Android partners to develop and distribute innovative Android-powered devices.”

Rubin also reports that major Android vendors indicated an “enthusiastic support” over the deal.

Right now with the Google and Motorola deal fresh in our minds, we can only speculate where these two companies are headed. Sure, we’ve known for sometime Google’s desire to own a piece of mobile hardware. But, any ideas on what Motorola’s future plans are?