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15 August 2011, 13:18

Google buys Motorola for $12.5 billion

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Android logo Google has announced it is acquiring Motorola Mobility, the mobile phone company and "dedicated Android partner", for $12.5 billion. Google CEO Larry Page says the acquisition will allow it to "create amazing user experiences that supercharge the entire Android ecosystem."

As well as the mobile phone design and manufacturing capability, Google will also be acquiring over 17,000 wireless related patents, and an estimated 7,500 pending patents. Motorola had been talking about leveraging its patent portfolio to generate licence revenues from other phone makers, including other Android phone manufacturers. Now, Google will own that portfolio and use it to defend Android. "Google remains firmly committed to Android as an open platform and a vibrant open source community", said Andy Rubin, Senior VP of Mobile, "We will continue to work with all of our valued Android partners."

The deal is subject to the approval of regulators in the US, Europe and other jurisdictions and is expected to be closed by the end of 2011 or early 2012. Motorola Mobility shareholders will also have to agree to the deal which sees the company priced at a 63% premium over its stock price last Friday.

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