We learned today that software giant Google has acquired Motorola Mobility for $12.5 billion, leading many to believe that Google might be getting into the hardware game. However, it was made clear that Google’s primary interest is in diversifying its patent portfolio, and acquiring Motorola Mobility helps it do just that. When its platform, Android, and hardware partners are falling under fire from Microsoft and Apple, Google really needed this to arm up.
However, the acquisition of patents isn’t the only big news–it’s the fact that Google picked up Motorola Mobility at $40.00 per share, which is a 63% premium over Motorola’s closing price on its shares on Friday, August 12, 2011.
Here is a full statement from Carl Icahn, who encouraged Motorola to find new ways of increasing the value of its patents:
NEW YORK, Aug. 15, 2011 /PRNewswire/ — Motorola Mobility Holdings, Inc. today announced that Google Inc. and Motorola Mobility have entered into an agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, a premium of 63% to the closing price of Motorola Mobility shares on August 12, 2011. Carl. C. Icahn commented:
This is a great outcome for ALL shareholders of Motorola Mobility, especially in light of today’s markets. In the past three years we have fought long and hard to separate Motorola Mobility from Motorola Solutions, as well as bring Sanjay Jha., as co-CEO.
Additionally, we have been strong proponents of the company exploring multiple ways to enhance the value of its patent portfolio. Motorola is activism at its best and we applaud management and the Board for acting so responsibly.