Google Purchases Motorola Mobility for $12.5 Billion


About 8 months ago, Motorola split into two companies, Motorola Mobility and Motorola Solutions. Motorola Solutions offers communication solutions for enterprises and governments while Motorola Mobility focuses on consumers and manufacturing mobile devices, including those with the Droid brand.

Google has acquired Motorola Mobility for $40.00 per share in cash, or approximately $12.5 billion, a 63% premium to the closing price of Motorola Mobility on Friday, August 12, 2011.

While it is unusual for Google to purchase a hardware company, Andy Rubin, Senior Vice President of Mobile at Google, said in a statement released early Monday morning, “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.”

CEO of Motorola Mobility, Sanjay Jha, 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.”

While Motorola is only one of many manufacturers that use Google’s Android software, other companies such as Samsung and HTC, will still be allowed to release phones with the Android software.

Google will now be in direct competition with Apple and Blackberry.

Google anticipates the transaction will close at the end of 2011 or beginning of 2012, and Motorola Mobility will run as a separate business.

Better Facebook+Phone Integration on the Way

Facebook’s stronger integration with phones is a hot commodity these days. Two recent devices, the HTC’s Salsa and ChaCha, have launched, now equipped with a physical Facebook button. Facebook is also promising dozens more mobile phones will be similarly equipped throughout the year. Facebook has officially shot down the idea of an official “Facebook phone” but promise to help with a deeper integration with phone software.

Facebook’s own, Charles Wu, discusses the new changes in an official Facebook blog post. It appears that different providers will advertise the Facebook integration in different ways; Wu writes, “Some manufacturers will be highlighting Facebook as a part of their phones’ on-screen interfaces, and others will use our brand as an element of the device hardware itself.”

The new Facebook integration will allow users to access Facebook Chat on their phones without actually having to install a smartphone application. Wu also explains the deeper integration regarding your Facebook friends on your mobile phone, “When you make a phone call, the screen displays your friends’ status updates and photos, and even their birthdays.”

Phone software that is this integrated with Facebook is both good and bad. It’s great to have all your friends available at your fingertips, but, to me, Facebook is going somewhat overboard. So many people are addicted to the social networking site as it is, and it’s getting easier and easier to avoid face-to-face interaction with individuals. This integration does, however, allow people to be reached at pretty much any point and time, at least when they have access to their phone, and let’s be serious, that’s pretty much all the time these days. It’s going to be interesting to see how the integration plays out on the different phones. I’m anticipating the effect that the Facebook integration with the software on some phones will be somewhat overwhelming, while others will find the perfect balance.