Web giant acquires mobile phone wing of Motorola inc.
In what comes as a bit of a shock to many out there, Google has announced that it is going to acquire the mobility wing of Motorola. The wing, which just recently split off from the core company of Motorola is responsible for the production of mobile hardware devices. The move comes just after Motorola announced a $56 million net loss for Q2.
The company, Engadget reports, will be bought over for the current market price of $40 per share, which adds up to a total of a whopping $12.5 billion. Google has promised to make Motorola a “dedicated Android partner” to “supercharge the Android ecosystem” and “enhance competition in mobile computing.” This of course brings to question how the deal will affect other hardware partners running the Android OS especially after seeing flagship devices from the likes of HTC and Samsung.
Larry Page was rather optimistic about the deal and went on to say:
“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.”
As of now at least, it seems that other mobile partners seem to be taking a very diplomatic tone on the decision taken by google with the CEO’s of HTC, Sony Ericsson and LG commenting:
“We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.” – Peter Chou, HTC
“I welcome Google’s commitment to defending Android and its partners.” – Bert Nordberg, President & CEO, Sony Ericsson
“We welcome Google’s commitment to defending Android and its partners.” – Jong-Seok Park, President & CEO, LG
Only time will tell how this will affect the dynamics between Google and it’s partners.