Home  › Media › Mobile

Google to Buy Motorola Mobility, Major Device Maker

  |  August 15, 2011   |  Comments

Deal will make Google a producer of tablets, set-top boxes and, most importantly, Android smartphones.

Google has agreed to acquire Motorola Mobility, Motorola's devices subsidiary, for an estimated $12.5 billion, or approximately four times what it paid for display ad giant DoubleClick three years ago. The deal is a major leap forward in Google's mobile ambitions, bringing it into closer competition with Apple.

Motorola Mobility was the mobile devices division of Motorola until its spin-off in January 2011. Google said it plans to continue running the company as a standalone business. In addition to Android smartphones, Motorola Mobility produces tablets, Bluetooth accessories, set tops, digital video recorders, and other products. It reported Q2 2011 net revenues of $3.3 billion.

As Google brings device design and manufacturing in-house, questions will inevitably come up about the future of its open development policy for the Android operating system. In a call with analysts this morning, Google CEO Larry Page pledged fealty to its device and developer partners.

"Android is growing like crazy," he said. "We think this will benefit all partners in the Android ecosystem. "

The deal may also give Google an edge in the recent legal challenges related to mobile patents. In July Google lost a bidding war for Nortel's mobile patents to a group of rivals that include Apple, Microsoft, and Research in Motion. That loss led to a war of words between Microsoft and Google on the companies' official blogs.



Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!



Featured White Papers

2015 Holiday Email Guide

2015 Holiday Email Guide
The holidays are just around the corner. Download this whitepaper to find out how to create successful holiday email campaigns that drive engagement and revenue.

Three Ways to Make Your Big Data More Valuable

Three Ways to Make Your Big Data More Valuable
Big data holds a lot of promise for marketers, but are marketers ready to make the most of it to drive better business decisions and improve ROI? This study looks at the hidden challenges modern marketers face when trying to put big data to use.