Google Inc. to buy Motorola Mobility for $12.5 billion
August 15, 2011
Google Inc. has agreed to acquire Motorola Mobility Holdings Inc. for about $12.5 billion. The move should make Google more competitive in the mobile-computing market, bolstering adoption of its Android mobile software to compete with smartphone rival Apple Inc. Google swooped in to buy Motorola Mobility and its attractive patent portfolio after losing out on a bid for Nortel’s patents.
Google, which owns the fast-growing Android operating system used in millions of mobile phones, has a thin portfolio of wireless and telecommunications patents.
Google will run Motorola Mobility which split from Motorola Inc. eight months ago, as a separate business that will remain a licensee of Android. Google also said Android will remain an open platform.
Google expects to complete the transaction by early 2012. It has already been approved by the boards of both companies but requires regulatory approvals in the U.S., European Union and other areas, as well as the blessing of Motorola Mobility’s shareholders.