Google to Acquire Motorola Mobility for $12.5 Billion

In a move likely spurred by Android’s (and its OEM partners’) recent legal woes, Google has announced its plans to acquire Motorola Mobility, the fledgling mobile technology arm of the telecommunications giant, for $12.5 billion USD. This equates to $40 per share at a premium of 63% to Friday’s closing price. With Motorola holding an alleged 17,000 patents worldwide, Google’s failure to acquire Nortel’s patent portfolio no longer seems to be as detrimental.

Jump past the break for more, including the full press release. Also, be sure to let us know your thoughts on what this means for the future of everyone’s favorite green robot.

While Google has utilized hardware partners in its flagship products–the Nexus line, and to a lesser extent, Google Experience devices such as the Motorola XOOM–this acquisition marks the first time in which an OEM will live under the same roof as its star OS. Google maintains that Android and Motorola Mobility will operate independently, however, giving other manufacturers the opportunity to create lead devices for future versions of the OS. Furthermore HTC CEO Peter Chou expressed excitement for the merger saying, “We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

Similar positive sentiment was shown from Samsung, Sony, and LG:

Peter Chou, CEO, HTC:

We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.

Jong-Seok Park, Ph. D., President and CEO, LG:

We welcome Google’s commitment to defending Android and its partners.

Bert Nordberg, President and CEO, Sony Ericsson:

I welcome Google’s commitment to defending Android and its partners.

Official Press Release:

Google to Acquire Motorola Mobility

Combination will Supercharge Android, Enhance Competition, and Offer Wonderful User Experiences

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill., Aug 15, 2011 (BUSINESS WIRE) — Google Inc. GOOG -3.32%  and Motorola Mobility Holdings, Inc. MMI +60.32%  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.

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

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.”

Andy Rubin, Senior Vice President of Mobile at Google, said, “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.”

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.

This acquisition will likely solve many of Android’s patent woes. However, it puts other OEMs in a precarious position. What do you think? Let us know in the comments below!