Google has agreed to acquire Motorola Mobility. The global search engine business will inherit Motorola's smartphone, home devices and video solutions divisions.
The $40 a share deal is a 63% premium on Motorola Mobility's closing price on the New York Stock Exchange on Friday.
Google CEO Larry Page said in a post on the search engine's blog: "Motorola's total commitment to Android in mobile devices is one of many reasons that there is a natural fit between our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere."
He added: "With the transition to Internet Protocol, we are excited to work together with Motorola and the industry to support our partners and cooperate with them to accelerate innovation in this space."
Page stated that the acquisition would not change Google's commitment to run Android as an open platform and that Motorola will be run as a separate business and remain a licensee of Android.
Sanjay Jha, CEO of Motorola Mobility, said, "This transaction offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses."
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