Google set to buy Motorola Mobility for $12.5 billion
Google has announced it will be buying Motorola Mobility for $12.5 billion. That's at $40.00 per share in cash, which is a 63% premium to the closing price of the stock as of last Friday.
It will definitely change the smartphone landscape. Google was 'just' the software side of the equation with Android, but now it's invested into the hardware side too. As a result, it may have gained that 'complete end-to-end stack' advantage that Apple has held to date.
MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.--(BUSINESS WIRE)-- Google Inc. (NASDAQ:GOOG - News) and Motorola Mobility Holdings, Inc. (NYSE:MMI - News) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.
The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.
Larry Page, CEO of Google, said,