Aug 15, 2011 12:01 PM GMT
Pretty remarkable. I would have thought that RIMM would go first.
Google is buying handset maker Motorola Mobility for $12.5 billion in cash.
That's a 61% premium.
Needless to say this is a gamechanger in the mobile world, as Google moves down the stack, and is no longer just an operating system provider meaning it competes directly with Apple as well as the various other handset makers who currently use Android.
What's more, one of the biggest arguments in favor of Apple's continued to dominance is that without a complete end-to-end "stack", no other platform could compete with its integrated software/hardware setup.
Bear in mind that Google has over $35 billion in cash, so this answers one question about what they'll do with it. The company still has tons more dry powder.
Other handset makers, like RIMM and Nokia are both up pre-market on the news as the focus obviously turns to Microsoft: Is it now forced to buy one of them? Or does Microsoft benefit because the remaining handset makers (Samsung, etc.) now turn more towards Windows?