Google to Buy Motorola Mobility for $12.5 Billion

Mountain View, Calif.-based Google will buy telecom maker Motorola Mobility for $12.5 billion in cash, the companies said Monday.

The firms have entered into a definitive agreement under which Google will buy Motorola Mobility for $40 per share -- a 63% premium over the closing price of Motorola Mobility shares on Friday -- they said in a statement indicating their boards of directors had unanimously approved the deal.

The deal gives a boost to Google's Android mobile operating system.

Copyright Agence France-Presse, 2011