Internet giant Google will buy US smartphone maker Motorola Mobility for $12.5 billion in cash, giving a boost to its Android mobile operating system, the companies said today.
The firms have entered into a definitive agreement under which Google will buy Motorola Mobility for $40 a share, a 63% premium over the closing price of Motorola Mobility shares on Friday, they said in a statement.
The statements also said their boards of directors had unanimously approved the deal.
Mororola Mobility manufactures smartphones and tablets while it also makes wireless accessories and video and data delivery products. It was separated from the rest of Motorola in January. The company has remade itself as a maker of smartphones based on Android, but has struggled against Apple and Asian smartphone makers.
Google's chief executive Larry Page says that the deal with 'supercharge the entire Android ecosystem.'
The deal gives Google direct control over the maker of many of its Android phones.
Motorola was split into two companies earlier this year. The other company, Motorola Solutions, provides communications products and services to businesses and governments.
Source : RTE News 15th August 2011
