Google has officially announced that they have completed the Motorola Mobility acquisition successfully for $12.5 Billion.
Google’s CEO, Mr. Larry Page proudly announced this acquisition in the company’s blog and the company is now expected to do more in the cell phone market. Motorola has been in distress for sometime now, since the company has failed to produce a good phone for the mass market. Motorola Razr was the last product that was ever successful and the device launched back in 2005, and was a huge hit among the cell phone users.
Dennis Woodside now replaces Sanjay Jha, who was the CEO is Motorola Mobility and the new acquisition is expected to bring back the Motorola to the place it was before. We are still not sure if the acquisition will remove the Motorola tag in the devices name, and the upcoming devices would be named as Google.
Mr. Woodside is from an online advertising background and he had helped Google raise its revenue from $10.8 Billion to $17.5 Billion in the past three years. But analysts are quizzed about Dennis being the new CEO of Motorola Mobility, considering the background from which he has come. And here’s what Carolina Milanesi of Gartner thinks about Mr. Dennis being the CEO of Motorola Mobility:
“It’s a bit concerning because online advertising is quite different than the hardware business,”
But still, we think Google has got something in the bag for us this year. Here’s what Google’s CEO, Larry Page announced today on the company’s blog:
It’s why I’m excited to announce today that our Motorola Mobility deal has closed. Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone. We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google.
Sanjay Jha, who was responsible for building the company and placing that big bet on Android, has stepped down as CEO. I would like to thank him for his efforts and am tremendously pleased that he will be working to ensure a smooth transition as long-time Googler Dennis Woodside takes over as CEO of Motorola Mobility.
I’ve known Dennis for nearly a decade, and he’s been phenomenal at building teams and delivering on some of Google’s biggest bets. One of his first jobs at Google was to put on his backpack and build our businesses across the Middle East, Africa, Eastern Europe and Russia. More recently he helped increase our revenue in the U.S. from $10.8 billion to $17.5 billion in under three years as President of the Americas region. Dennis has always been a committed partner to our customers and I know he will be an outstanding leader of Motorola. As an Ironman triathlete, he’s got plenty of energy for the journey ahead—and he’s already off to great start with some very strong new hires for the Motorola team.
It’s a well known fact that people tend to overestimate the impact technology will have in the short term, but underestimate its significance in the longer term. Many users coming online today may never use a desktop machine, and the impact of that transition will be profound—as will the ability to just tap and pay with your phone. That’s why it’s a great time to be in the mobile business, and why I’m confident Dennis and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come.
Posted by Larry Page, CEO