Google Buying Motorola Mobility For $12.5 Billion
Google Inc. said on Monday that it will buy Motorola Mobility Holdings Inc. for $12.5 billion.
The Internet giant said it would pay $40 per share for a 63 percent stake in Motorola’s Mobility.
Motorola Mobility’s shares jumped up 59 percent on the New York Stock Exchange following the announcement on Monday.
"Motorola Mobility’s total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page in a statement. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."
Both of the companies’ boards approved the acquisition and the deal is expected to close this year or early 2012.
Some reports say that Google’s acquisition of Motorola is seen as a move to get a hold of the company’s 17,000 patents on phone technology.
The company recently lost out a bidding war with other companies to win thousands of patents from Novell Inc.
Google Chief Legal Officer David Drummond accused Microsoft, Apple, Oracle and "other companies" earlier this month of hampering Android software by buying up patents.
Motorola has nearly three times more patents than Nortel.
This acquisition by Google is the biggest to date and dwarf’s the company’s 2008 purchase of DoubleClick for $3.2 billion.
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