Google To Become Mobile Handset Power With $12.5B Deal For Motorola Mobility

This is the biggest deal Google has ever made. We’ll see whether it gives the Web giant the resources it needs to make its Android-powered handsets even more potent competitors to Apple’s iPhone. But Motorola Mobility investors should be happy with the $40 a share offer — a 63% premium from Friday’s closing price: Billionaire Carl Icahn, who owns 11.4% of the company and had urged it to consider cash-generating options such as selling its patent portfolio, says the deal is “a great outcome for all shareholders of Motorola Mobility, especially in light of today’s markets.”

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.– Google Inc. (NASDAQ: GOOG) and Motorola Mobility Holdings, Inc. (NYSE: MMI) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business. (more…)

This article was printed from https://deadline.com/2011/08/google-to-become-mobile-handset-power-with-12-5b-deal-for-motorola-mobility-157578/