Google Motorola Mobility Acquisition To Supercharge Android & Kick iPhone's Butt

Google is shopping and it's fixed its eyes on Motorola Mobility Division (Motorola Mobility Holdings, Inc. NYSE: MMI). Google #-Link-Snipped-# the news today on their investor site. The purpose of this acquisition is to supercharge the Android OS platform, enhance the competition and offer an upgraded user experience. The acquisition has been approved by the board of directors of both companies. Google will acquire MMI for $40.00 per share in cash (totaling $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011). Motorola mobility has been and android dedicated partner for long time and the acquisition makes a perfect buy for Google to offer serious competition from Apple iOS. Apple, so far, is in control of the hardware and software of iPhone and with this acquisition, Google too will be able to guide the development & integration of hardware and software for the next Android phones.

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Google Motorola Mobility Acquisition Android | Image: Engadget

Google launched Android back in 2007 and since then it's rapidly became the mobile OS of choice among the geek community. Google says that since its launch, over 150 million Android devices have been activated and 550k new devices are being activated every day. Android is available on both phone and tablets all over the world. Motorola, on the other hand, has a long history of innovation. Remember our #-Link-Snipped-#? It was Motorola that invented the first cellular phone. In 2008, Motorola widely adopted Android as the sole operating system for their phones and current generation of Motorola Android phones "DROID" are already popular all over the world.

Larry Page, the co-founder and current 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.”

Mr. Sanjay Jha 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.”

Now that Google is in control of the hardware and software, other mobile hardware manufacturers will have to be more careful. Google has pleaded that they'll keep Android Open. Motorola will license it and others will be able to use it as ever. We wonder what Samsung thinks about this acquisition.