Google to Buy Motorola for $12.5 Billion

Northern, WI 8/15/2011 (PennyPayDay) – In a surprise deal, Google has agreed to buy Motorola Mobility for $12.5 billion, two companies said Monday. Google is paying $40 a share for Motorola Mobility Holdings (MMI), a premium of 63% over its closing price on Friday.

Google said that access to Motorola, which makes phones that run on Google's Android mobile operating system, will "enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing."

"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Google Chief Executive Larry Page in a press release.
Google's stock fell about 3% in premarket trading while Motorola's rose more than 60%.

Motorola, like BlackBerry maker Research in Motion (RIMM) and Finnish smartphone company Nokia (NOK), have all struggled to keep pace with Apple, the maker of the popular iPhone.

Nokia's stock jumped more than 7% in premarket trading and RIM was up 4%. Apple was little changed.

Motorola Mobility began trading as a separate company earlier this year. The company split from Motorola Solutions (MSI), which makes telecom equipment for public safety use.

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