Google announced that it will acquire Motorola Mobility Holdings, Inc., a division of Motorola, Inc. responsible for smartphones and tablets, wireless accessories, end-to-end video and data delivery, and management solutions. Google will acquire Motorola Mobility for about $12.5 billion in cash. The transaction was approved by each company's board of directors unanimously.
Google can use the acquisition to further develop the Android ecosystem; Motorola Mobility is already a dedicated Android partner. After the acquisition, Google will operate Motorola as a separate business, and it will remain an Android licensee. The Android operating system will remain open. The transaction is subject to customary closing conditions and is expected to close by the end of 2011 or early 2012.