2011/08/15

Google to buy Motorola Mobility for $12.5 bln

NEW YORK, August 15, 2011 (AFP) - Internet giant Google will buy US telecom maker Motorola Mobility for $12.5 billion in cash, giving a boost to its Android mobile operating system, the companies said Monday.

The firms have entered into a definitive agreement under which Google will buy Motorola Mobility for $40.00 per share, a 63 percent premium over the closing price of Motorola Mobility shares on Friday, they said in a statement indicating their boards of directors had unanimously approved the deal.

Under the agreement, Motorola Mobility will remain an Android licensee and Google will run the unit as a separate business.

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

"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."

Motorola Mobility CEO Sanjay Jha hailed the "significant value" the transaction will bring to the firm's stockholders, along with new opportunities.

"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," he added.

Customary closing conditions apply to the transaction, including the receipt of regulatory approvals in the United States, the European Union and elsewhere, along with approval from Motorola Mobility stockholders.

The acquisition was expected to close by early next year.

"We expect that this combination will enable us to break new ground for the Android ecosystem," said Andy Rubin, senior vice president of mobile at Google.

"However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community."

Motorola Mobility manufactures mobile devices such as smartphones and tablet computers.