Google – Motorola Mobility Deal

Group Members:

Aniket Bahaley 25 Nilesh Divate 41

Anchal Sharma 49

Google• Google Inc. is an American multinational public corporation

which hosts and develops a number of Internet-based services and products.

• Began in January 1996 by Larry Page and Sergey Brin.• Originally nicknamed their new search engine "BackRub”.• Domain name for Google was registered on September 15,

1997 and the company was incorporated on September 4, 1998.• Headquarter at California, United States.• Partners: KeyHole Inc., Grand Central, NASA, Sun

Microsystems, YouTube, Geo Eye, Double Click, On2 Technologies, Aardvark etc.

• Products: Search Engines, Ad Word, Google Earth, Google Wave, Google News, Android, Google+.

Motorola Mobility

• Motorola, Inc. was an American multinational telecommunications company.

• Divided into two independent public companies,Motorola Mobility and Motorola Solutions on January 4, 2011 after losing $4.3 billion from 2007 to 2009.

• Chairman and CEO: Sanjay Jha , President and Co-CEO: Jeff Ware.

• Motorola demonstrated world's first working-prototype digital cellular system and phones using GSM standard in 1991.

• Motorola's wireless telephone handset division was a pioneer in cellular phones which started 30 years ago.

• Products: Tablet PCs, Mobile Phones, Networking System, Wireless Broadband Systems etc.

LARRY PAGE

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.

LARRY PAGE

SANJAY JHA

• 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.”

This comes hot on the heels of a $56 million Q2 net loss for Moto in this year

THE DEAL

THE BIG DEAL

• NASDAQ: GOOG (Google)• Motorola Mobility Holdings, Inc. (NYSE: MMI) • $12.5 billion DEAL AUGUST 15• At a premium of 63% to the closing price of Motorola

Mobility shares on Friday, August 12, 2011• Google 754 patents • Motorola's 17,000 patents and 7,500 patent applications,

24500 TOTAL

POST DEAL CONSIDERATIONS

• Strengthen the ties between hardware and software• Continue offering Android as an open platform• HTC and SAMSUNG will be able to use it for ever• To operate its new toy as a separate business• Help other products of GOOGLE• Protect Android market• Better competition to APPLE

BREAK UP AGREEMENT

• Google agreed to pay Motorola Mobility $12.5 billion

• Motorola Mobility would pay $375 million if it decided not to sell to Google

• Bottom line, a bold move by Google. But one that raises a lot more questions and challenges than answers.

ADVANTAGES TO GOOGLE

• Will put Google into smart phone business rather than solely software.

• Gained 17000 patents from Motorola.

• It may increase android’s daily activations from current rate of 0.55 millions over 123 countries.

• Increase in number of users for Google products like Google+ & Google Wallet.

contd…

• Increase Google TV market share with the help of Motorola Set Top Box.

• Reduce dependency of Android from hardware manufacturing companies like HTC & Samsung.

• Google will now own its hardware along with software as that of Apple, HP etc.

BIBLIOGRAPHY

• www.bloomberg.co• www.engadget.com• www.huffingtonpost.com• www.techcrunch.com• www.google.com/about/corporate/company• www.motorola.com

THANK YOU…