Dramatic move into the device space for Android maker

Google to buy Motorola Mobility for $12.5bn

The two firms have just confirmed that Google will acquire Motorola Mobility for $40.00 per share in cash.

The official release says the deal ‘will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing’.

Needless to say Motorola Mobility will remain a licensee of Android and Android will remain open to other OEMs.

Andy Rubin, senior VP of mobile at Google, said, "We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community."

In other words, don’t panic all you other OEMs. But you have to wonder how this might affects the giving out of Android platform goodies.

In the past, Google has been careful to share evenly first dibs on new OSs. HTC, Samsung and Moto have all taken their turns to be first to rush out devices based on an updated platform.

Will Google be so even-handed now? 

The deal has to be great for Moto though, which endured a hideous period post-Razr and has been partly rehabilitated by Android in its native US (where it has 11 per cent of the Android market), but less so in the rest of the world.

It sold 11m smartphones in Q2, but made a loss.

Sanjay Jha, CEO 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."

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