Google (GOOG $558.35 -5.42) and Motorola Mobility (MMI $38.39 +13.92) announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion.
The transaction was unanimously approved by the boards of directors of both companies. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business. The transaction is expected to close by the end of 2011 or early 2012.






