Early on Monday, Google made a statement that it is going to Motorola Mobility Holdings. This will the first move for the Mountain View Company’s first prime to become the owner holding, which is better than a mere partnership in the smartphone hardware industry.
Google’s CEO, Larry Page claimed that the blending of the two companies will not only supercharge Android, but also encouraged competition and offer consumers gathers momentum in innovation, better choice, and superb user familiarity.
Google is going to acquire Motorola for nearly $40 per share in cash, or more or less $12.5 billion dollars, “a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011,” as stated in the press release.
Based on the statement of Motorola Mobility CEO Sanjay Jha, the transaction has a high value for Motorola Mobility’s stockholder as well as provides new opportunities for their employees, customers, and partners worldwide.
On the past three years, the smartphone arms race among handfuls of companies has been cutthroat. Research in Motion, once the main player in the handset space, has been bleeding portion since the launch of Apple’s iPhone and the Android operating system. A dwindling Palm obtained by Hewlett-Packard in 2010 HP hopes that the massive company will improve its handsets. Also, help the operating system gain share in the viable space. Also since Google and Apple come into the ring in 2007 and ‘08, correspondingly, all things have changed.
However, this is an assurance moment for Google, a company that has not had a part in owning any of the hardware on which its operating system operates so far. Apple, RIM and HP, by contrast, all own both the software and hardware features of their own product offerings.
Google says its Android operating system is going to stay wide open to all manufacturers, despite the plans for the purchase.
In a statement, released by Android head honcho Andy Rubin, Their vision for Android is to keep Android the way it is now while Google remains firmly dedicated Android as an open platform and a lively open source community. They want to continue working with all the valued Android partners in developing and distributing innovative Android-powered devices.
HTC CEO Peter Chou claims that they are willing to embrace the headlines of today‘s acquisition, which proves that Google entirely devoted to defending Android, its partners, and the entire ecosystem.
Part of the impetus following the deal appears to be the history of continuing patent lawsuits and headaches Google has tackled with its Android platform. Recently, Apple, Microsoft and a consortium of other companies lined together to purchase the now defunct Nortel’s patent portfolio for a record $4.5 billion U.S…