Google (GOOG) Agrees to Acquire Motorola Mobility (MMI) in $12.5B Deal

Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) announced early Monday the company's have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40 per share in cash, or for a total price of about $12.5 billion.

The deal came at a 63% premium to the closing price 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.

Google's Larry Page said, "Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. 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."

The transaction is expected to close by the end of 2011 or early 2012.

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