 |
Google snaps up Motorola Mobility for $12.5B US
 |
The Associated Press- Google is buying cellphone maker Motorola Mobility for $12.5 billion US in cash in what is by far the company's biggest acquisition to date.
Google Inc. said Monday it will pay $40 per share, a 63 per cent premium to Motorola's closing price on Friday.
The California-based search engine giant and Chicago-area based smartphone maker said the deal has been approved by the boards of both companies.
Google CEO Larry Page said that the deal with "supercharge the entire Android ecosystem."
The deal gives Google direct control over the manufacturer of many of its Android smartphones.
"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," Page said in a release from Google headquarters in Mountain View, Calif.
"Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers."
Sanjay Jha, CEO of Motorola Mobility, said, Monday's blockbuster deal "offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for our employees, customers, and partners around the world."
"We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses."
The transaction is subject to customary regulatory and closing conditions and is expected to close by the end of 2011 or early 2012.
In premarket trading, shares of Motorola Mobility Holdings Inc. are up 60 per cent, or $14.72, to $39.19.
366 page views
|
|
|
|