Google buys Motorola in £7.7bn deal
Monday 15 August 2011
Google stepped up its assault on the smartphone and tablet computer market today with the £7.7 billion acquisition of handset maker Motorola.
The search engine group is to pay 12.5 billion US dollars for Motorola Mobility in a deal which gives it direct control over one of the largest manufacturers of mobile phones running Android, Google's own operating system.
The price, a 63% premium to the value of Motorola Mobility at the end of last week, makes the deal the largest ever undertaken by the California-based company and was hailed by Google chief executive Larry Page as a "natural fit".
Motorola Mobility is already a partner of Google, but will remain as a separate business and licensee of Android, which will also remain an open platform.
Shares in Motorola Mobility soared on news of the deal, which comes just eight months after the former Motorola split into two companies - Mobility, the handset company, and Solutions that supplies wireless services to business and governments and which is not part of today's deal.
Analysts said today's acquisition marks a change of emphasis for Google as the battle with Apple and Asian rivals intensifies in the booming smartphone and tablet market.
Predictions are for the tablet computer market to grow more than 10-fold by 2015, with tablets running on Android tipped eventually to match or even overtake the current market leader, Apple's iPad.
Patents are increasingly becoming a key weapon in the battle. Google recently lost a bidding battle over thousands of wireless patents owned by Nortel Networks to a consortium of Microsoft, Apple and Blackberry owner Research In Motion. Motorola Mobility has more than 17,000 phone technology patents.
Google expects the purchase, which was unanimously approved by the boards of both firms, to complete by the end of 2011 or early 2012.
In its last trading quarter, the internet search giant beat expectations after net profit for the three months to June 30 jumped 36% on a year earlier to 2.5 billion (£1.5 billion) and revenues lifted 32% to a record 9 billion dollars (£5.6 billion).
Its previous biggest deal was the 3.2 billion dollars (£2 billion) spent on online advertising group DoubleClick.
Life & Style blogs
'I am a paedophile': Is our approach to sex offenders helping to create more victims?
Scientists discover 'stroke protection gene' – that also guards against heart attack and migraine
Dame Vivienne Westwood: The former Queen of Punk may now be an establishment pillar, but her work is still controversial – and much copied
Parenting gay teens: the book that all parents need to read
Regin: US and UK intelligence services could be responsible for snooping spyware
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 4 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
- 5 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
iJobs Gadgets & Tech
£26000 - £33000 per annum + benefits and bonus: Ashdown Group: PHP Developer (...
£18000 - £24000 per annum: Recruitment Genius: A Junior Software Developer is ...
£28000 per annum: Ashdown Group: PHP Web Developer - PHP MySQL JQuery HTML CSS...
£250 per day: Langley James : Network Engineer, NHS, CCNA, CCNP, West London £...