Google to buy Motorola Mobility. What's behind the sale?
Google makes its biggest acquisition yet, spending $12.5 billion on Motorola Mobility. But did Google want the phone manufacturer or its patents?
Marcio Jose Sanchez/AP/FILE
MOUNTAIN VIEW, Calif.
Google Inc. is buying cell phone maker Motorola Mobility Holdings Inc. for $12.5 billion in cash. It's by far Google's biggest acquisition and a sign the online search leader is serious about expanding beyond its core Internet business and setting the agenda in the fast-growing mobile market.
Google will pay $40.00 per share, a 63 percent premium to Motorola's closing price on Friday.
Google's Android operating system runs smartphones that compete with iPhones, BlackBerrys and Windows-based mobile devices. Motorola Mobility 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 Inc. and Asian smartphone makers.
"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page in a statement. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."