Google to acquire Motorola Mobility for $12.5 Billion

Google Inc said it will buy Motorola Mobility Holding Inc for about $12.5 billion in cash. Google’s share offer is $40 a share, which is at 63 percent premium to Motorola Mobility’s share price before the announcement of the deal.

Google will no longer be just a provider of operating system, thus it will compete directly with Apple, as well as other phone manufacturers that currently use the Android operating system , writes Business Insider.

Motorola Mobility will continue to have the right to use Android. The platform itself will remain open. Google will manage Motorola Mobility as a separate business.