15.06 Europe/London, August 15, 2011 By Julian Clover
Motorola’s mobile and set-top business is to be acquired by Google for $12.5 billion (€8.73m). The sale of Motorola Mobility represents a 63% mark-up on the closing price last Friday.
Already a partner in the use of Android on mobile phones, Motorola was one of the first companies to push the Google technology for companion devices when operators were largely favouring Apple iOS. Google said that it would continue to run Motorola Mobility as a separate business.
“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,” said Google CEO Larry Page.
Sanjay Jha, CEO of Motorola Mobility, said the deal would provide significant value for Motorola stockholders. “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.”
Motorola Mobility only became a separate company at the start of 2011. The other half of the separated company, Motorola Solutions, concentrates on communication products and services for enterprise and government customers.
The transaction first requires regulatory approval in the United States and Europe.