Google has recently entered into an agreement to acquire Motorola Mobility for about $12.5 billion offering about $40 per share in cash, a premium of 63% over the closing price of Motorola Mobility shares.
Motorola Mobility, the mobile phone and tablet maker exclusively ships phones and its Xoom tablet with Google’s Android OS. Carolina Milanesi, the research vice president at Gartner says that the recent deal will mean that Google now has a hardware manufacturer to develop Android. It will also have control of Motorola’s impressive patent portfolio of about 24,500 patents.
Google is also speeding up the development of its Android OS code-named Ice Cream Sandwich, which will be the operating system designed for tablets and mobile devices.
Google reiterated that the acquisition will supercharge the Android ecosystem and enhance competition in mobile computing but will not affect how Android is developed, and the operating system still remains open.
Hence, Google will run Motorola Mobility as a separate business. The latter’s transaction is expected to close at the end of this year or early next year.