Google revealed today it is to buy Motorola’s mobile phone division that is responsible for the development and manufacturing of smartphones, tablets and accessories. Google brought the division for $12.5 billion (£7.7 billion), paying in cash $40 per share, which represents a bonus of 63% over the price of last Friday.

With this acquisition, Google expects to boost its operational system Android and strategy to grow stronger within the smartphone market, as one of their major problems is related to the lack of mobile phone patents. Motorola Mobility holds 24,500 patents.
To Motorola it represents an important deal, sales have plunged in the last years, as Apple, HTC and Samsung have taken the lead, offering more attractive smartphones.
The deal might be completed late this year or early 2012, as it is yet to be approved by shareholders and regulatory agencies and in addition, Mobility will be kept as a separated company.
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