BetaNews: Google thoroughly rocked the smartphone world on Monday morning by announcing it will be acquiring Android phone maker Motorola Mobility for approximately $12.5 billion. Motorola Mobility has existed as a standalone entity for just 8 months, and has produced some of the most successful Android smartphones such as the first Droidwith Verizon Wireless.
Most importantly, though, Motorola Mobility holds one of the most valuable wireless patent portfolios in the business, and this acquisition serves as a follow up to the Nortel Patent auction where Google placed bids, but lost out to a consortium of bidders that included Apple, EMC, Microsoft, Ericsson, Research in Motion, and Sony.
The results of that auction turned into quite a war of words, when Google publicly accused the consortium of buyers of wanting those patents strictly to sue Google for Android patent violations.
Irrespective of patents, Motorola Mobility has been a committed Android manufacturer that devoted one hundred percent of its catalog of devices to Android. Without the manufacturer's total support, Android's position in the smartphone market would no doubt look very different than it does today.
“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,” said Larry Page, CEO of Google in a statement on Monday.
Google's announcement said the transaction will close at the end of 2011 or beginning of 2012, and Motorola Mobility will run as a separate business.