Google Acquires Motorola for $12.5 Billion
Internet giant looking to become a leader in the mobile hardware business.
Google, the developer of the Android mobile operating system, announced Monday morning that it has purchased Motorola Mobility for $12.5 billion.
Google, the world's most popular search engine, launched their open platform operating system for mobile phones in 2007, and today it powers many of Motorola's handsets, along with 38 other manufacturer's phones.
Google CEO Larry Page explained the reason for the acquisition in his blog post:
"The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences."
Page further states that the acquisition will not change Google's strategy regarding the Android:
"This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences."
Motorola's stock is up 58.07% in pre-market trading following the news.