Google buys Motorola Mobility for $12.5 Billion, What’s in Store?

No one predicted or even speculated this. Looks like Google did have some plans to get into the hardware stuff of Gadgets and Phones instead of just sticking with its software platform Android.This acquisition of Motorola is going to lead to some interesting  competition in the mobile computing market including Gadgets. In a press release, Google announced this acquisition.

AUGUST 15, 2011 – Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

Motorola Mobility, which was already a dedicated Android partner will help Google to supercharge its Android ecosystem and will enhance competition in mobile computing. Google plans to run Motorola Mobility as a separate business instead of integrating it somewhere else into its products. The press release also said that Android will remain open source. I am not sure about the statement as Android was always touted as a open source platform.

As Andy Rubin, Senior Vice President of Mobile at Google puts this deal as :

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.

So, what should be seen behind this move? Google plans to enter into Mobiles/ Gadgets market with its own devices? or it will stick with other hardware manufacturers for the devices and will just focus on Android? We think the first one makes some sense now. Does this deal has something to do with Apple? Still I am not a expert and cant speculate much. What about you guys? Any ideas? or opinion? Do share it with us.

If you want, you can catch Larry Page Google+ Stream about the Motorola deal here.

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