Google Closes Acquisition Of Motorola: Woodside To Lead; Page Pushes Mobile Aspect
As we reported would happen yesterday, Google has today announced that it has closed its acquisition of Motorola Mobility, buying the Illinois-based device maker for $40 per share in cash for a total of $12.5 billion.
As widely expected, Sanjay Jha is stepping down as CEO and Dennis Woodside, Google’s former Americas head, will take the helm at Motorola Mobility, which will be operated as a standalone company. The company says the acquisition will help Google “supercharge” the Android ecosystem: while Motorola will be making devices using the platform, it will also remain open.
Page, interestingly, uses his blog post announcing the deal to focus mainly on the mobile aspects of the acquisition — Motorola also has a substantial business as a media hardware vendor, making things like set-top boxes and other equipment and technology to deliver digital video services.
“The phones in our pockets have become supercomputers that are changing the way we live,” he writes, emphasizing what the future might hold for mobile technology and likening it to Star Trek made real (and those Google Glasses really do look very Star Trek).
“It’s a great time to be in the mobile business…I’m confident Dennis [Woodhouse] and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come,” Page writes.
In announcing the acquisition, Page describes Woodhouse as “phenomenal” at team-building, and notes under him, U.S. revenues went up to $17.5 billion from $10.8 billion in less than three years. “Dennis has always been a committed partner to our customers and I know he will be an outstanding leader of Motorola,” he wrote.
Now come more questions: what Motorola assets will Google hold on to, and what will it cut off in the new-look Motorola Mobility — and what will that say about Google’s bigger strategy as an integrated tech player? And will employees go in the process, as we have heard they will?
- MOTOROLA MOBILITY
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing…
Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to mobile and wireline digital communication devices that provide compelling experiences, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $22 billion in 2009
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