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Google to buy Motorola

15 August 2011 16:10 (UTC +04:00)

Baku â€“ APA-Economics. Google Inc. (GOOG) agreed to acquire Motorola Mobility Holdings Inc. (MMI) for about $12.5 billion, a move that would make Google more competitive in the mobile-computing market.
The deal, which comes just eight months after the split of Motorola Inc., would give Google control of Motorola Mobility’s attractive patent portfolio after the Internet giant recently missed out on a bid for Nortel Networks Corp.’s (NRTLQ) portfolio. Google, which owns the fast-growing Android operating system used in millions of mobile phones, has a thin portfolio of wireless and telecommunications patents.
Motorola Mobility shares soared 60% to $39.24 premarket, approaching the offer price of $40 a share, which is a 63% premium to Friday close. Google shares were down 3.2% to $546.50 premarket.
Google will run Motorola Mobility as a separate business that will remain a licensee of Android. Google also said Android will remain an open platform.
Google expects to complete the transaction by early 2012, and it’s been approved by the boards of both companies.