Google to Buy Motorola Mobility Subject to Shareholders

Google is taking a high-stakes gamble in the global smartphone war by making a move to buy Motorola Mobility.  The internet giant’s have announced a deal worth $12.5bn (£7.7bn).

A joint statement said the boards of both companies had unanimously approved the deal, which should be completed by the end of this year, or early in 2012.

Earlier this year, Motorola split into two separate companies.  The Mobility side of the business is responsible for developing and manufacturing mobile phones, whilst Motorola Solutions covers wider technologies for corporate customers and governments.

Shares in Motorola Mobility jumped 56% by the close of trading in New York on Monday, to $38.13, still below the offer price of $40 per share. Shares in Google fell 1.8%.  Interestingly, shares in Nokia have risen as well, reinforcing speculation that they too are a bidding target, with Microsoft the potential bidder.

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