Google pays $12.5 billion for Motorola Mobility

Sometimes you wake up to find some rather unexpected news has been announced, and today that’s most definitely the case.

Google has acquired Motorola Mobility for $12.5 billion. That’s around a 63% premium on the share price. With such a premium in place it’s not surprising it was accepted unanimously by shareholders who will walk away quite rich in these otherwise very poor market conditions.

Motorola’s mobile division has made a clear shift to Android phones of late and produced a number of popular handsets carrying the Droid name. If there was any mobile company that fitted well with Google it was Motorola in recent years. In fact, Larry Page pointed to Motorola’s “total commitment to Android” as a key reason this acquisition came about.

As for Google’s plans now it owns a phone hardware company, it has been restated that the focus is still on keeping Android as an open system. There’s no word yet on plans for new hardware, but that’s sure to be inevitable in time.

As far as Motorola Mobility is concerned, for the moment they intend to just carry on as normal while the inevitable regulatory checks are done allowing the deal to be finalized hopefully no later than early next year. In the long term Google has stated the company will remain a separate business.

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