Google Buys Motorola Mobility for $12.5 Billion

Google said the deal will not affect the development of the its Android operating system

Google has entered into an agreement to acquire the mobile phone maker Motorola Mobility for about US$12.5 billion, the company said on Monday.

Google has offered about $40 per share in cash, a premium of 63 percent over the closing price of Motorola Mobility shares on Friday.

The acquisition of Motorola Mobility will enable Google to "supercharge the Android ecosystem and enhance competition in mobile computing," according to a news release. Google said the deal will not affect how Android is developed, and the operating system will remain open, Google said.

The company will run Motorola Mobility as a separate business, Google said.

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