Android, Inc. was founded in Palo Alto, California, United States in October 2003 by Andy Rubin (co-founder of Danger), Rich Miner (co-founder of Wildfire Communications, Inc.), Nick Sears[20] (once VP at T-Mobile), and Chris White (headed design and interface development at WebTV) to develop, in Rubin's words "...smarter mobile devices that are more aware of its owner's location and preferences". Despite the obvious past accomplishments of the founders and early employees, Android Inc. operated secretly, revealing only that it was working on software for mobile phones. That same year, Rubin ran out of money. Steve Perlman, a close friend of Rubin, brought him $10,000 in cash in an envelope and refused a stake in the company.
Google acquired Android Inc. on August 17, 2005, making Android Inc. a wholly owned subsidiary of Google. Key employees of Android Inc., including Andy Rubin, Rich Miner and Chris White, stayed at the company after the acquisition. Not much was known about Android Inc. at the time of the acquisition, but many assumed that Google was planning to enter the mobile phone market with this move.
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(from Wikipedia)