Google Set to Buy Motorola Mobility for $12.5 Billion in Cash
Google (NASDAQ:GOOG) is buying cell phone maker Motorola Mobility Holdings (NYSE:MMI) for $12.5 billion in cash in Google’s largest acquisition to date, far outweighing its $3.2 billion purchase of DoubleClick in 2008. The sale price values Motorola’s stock at $40.00 a share, a 63% premium to the company’s closing share price on Friday.
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Motorola Mobility Holdings was separated from the rest of the Motorola company in January, building its reputation as a maker of smartphones by using Google’s Android software, but struggling to compete with Apple (NASDAQ:AAPL) and other Asian smartphone makers.
The acquisition has already been approved by both companies’ boards and should close late this year or early 2012. Google CEO Larry Page says the deal will “supercharge the entire Android ecosystem.”