Google buys Motorola Mobility for $12.5 Billion

Google stunned the high-tech world on Aug. 15 with an offer to buy Motorola Mobility (NYSE:MMI) for $12.5 billion. The company's largest purchase ever should give the search engine its much-needed patent protection. 

Google agreed to pay $40.00 per share in cash, a premium of 63 percent over Motorola Mobility's Aug. 12 closing price. Ending regulatory approval, the bid is slated to close by the end of 2011 or in early 2012.

Motorola Mobility will remain a licensee of Android, which will remain available to other hardware makers under an open-source license. Google intends to run Motorola Mobility as a separate business.

The patent wars  and the ability to own and control an Android hardware maker are what made Google pull the trigger on this deal, as Google CEO Larry Page said it will entitle him to "supercharge the Android ecosystem and will enhance competition in mobile computing."

"Motorola Mobility’s total commitment to Android has created a natural fit for our two companies," Page added. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers."