Google Acquiring Motorola Mobility for $12.5 Billion
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Google (NASDAQ: GOOG) announced this week its intention to acquire Motorola Mobility (NYSE: MMI) for $12.5 billion.
The deal will see Google paying $40 per share in cash for the Motorola Mobility shares, which is a 63 percent premium over the close at the end of trading on Friday. Google expects the deal to close by the end of 2011.
The acquisition of Motorola Mobility will give Google its' own hardware division for mobile devices which is something that company has not had previously. Motorola has been one of Android's strongest supporters with phones such as the Droid and the Xoom tablet.
"In 2008, Motorola bet big on Android as the sole operating system across all of its smartphone devices," Google CEO Larry Page blogged. "It was a smart bet and we’re thrilled at the success they’ve achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth."