Google Buying Motorola Mobility for $12.5 Billion

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Google has agreed to acquire Motorola Mobility for about $12.5 billion, making its first major foray into the hardware business and securing patents that help its Android software compete against Apple and the iPhone. All Motorola smartphones already run on Android and the platform will remain open, with Google running Motorola as a separate business. The search giant is paying $40 per share in cash, 63 percent higher than Motorola's closing price on Friday. Google CEO Larry Page explained in a blog post that Motorola's portfolio of patents will "better protect Android from anti-competitive threats from Microsoft, Apple and other companies."

Google Agrees to Acquisition of Motorola Mobility for About $12.5 Billion [Bloomberg]
Supercharging Android: Google to Acquire Motorola Mobility [Google Blog]