In $12.5B Deal, Google Buys Motorola Mobility
By Matt Egan
Ratcheting up the pressure on Apple (AAPL: 383.37, +6.38, +1.69%), tech heavyweight Google (GOOG: 558.93, -4.84, -0.86%) unleashed a $12.5 billion deal on Monday to acquire Motorola Mobility (MMI: 38.45, +13.98, +57.13%).
The transaction launches Google into the phone-making business and allows it to pair its popular Android operating system with handsets of its own design, much like Apple does with its
The deal, Google’s largest ever, also marks a vote of confidence in the global economy at a time of great uncertainty and unprecedented market volatility.
Mountain View, Calif.-based Google agreed to pay $40 in cash per share of Motorola Mobility, translating to a hefty 63% premium on the company’s Friday close of $24.47.
“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.”