Google seeks Motorola edge for Android

Dubai: Google will "supercharge" its Android ecosystem by moving to acquire Motorola Mobility Holdings for $12.5 billion (Dh45.91 billion).

Larry Page, CEO of Google, wrote on his blog on Monday that the Motorola acquisition will help boost the evolving Android platform launched four years ago by creators Google.

"Since its launch in November 2007, Android has not only dramatically increased consumer choice but also improved the entire mobile experience for users. Today more than 150 million Android devices have been activated worldwide — with over 550,000 devices now lit up every day — through a network of about 39 manufacturers and 231 carriers in 123 countries," Page said.

"Given Android's phenomenal success, we are always looking for new ways to supercharge the Android ecosystem."

The company said it is shelling out $40 per share in cash, or a total of about $12.5 billion, a premium of 63 per cent to the closing price of Motorola Mobility shares on Friday.

The transaction was unanimously approved by the boards of both companies.

Jurisdictional approvals

The transaction won't close until it receives regulatory approvals around the globe. It is expected to be finalised by late 2011 or early 2012.

Page praised Motorola — the company that introduced the mobile phone 30 years ago — for being one of the founding members of the Open Handset Alliance "that worked to make Android the first truly open and comprehensive platform for mobile devices. I have loved my Motorola phones from the StarTAC era up to the current DROIDs".

He noted that Motorola invested heavily in Android in 2008 as its "sole operating system across all of its smartphone devices. It was a smart bet and we're thrilled at the success they've achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth."

The belief in the Android platform, Page said, "is one of many reasons that there is a natural fit between our two companies."

The new fit will not change Android's open platform, he said, adding that Google will continue to work with all handset makers who have also committed to Android.

In a statement, Sanjay Jha, CEO of Motorola Mobility, 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. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses."