Stock Market News: Google to Buy Motorola Mobility for $12.5B

http://www.StockMarketFunding.com Stock Market News: Google to Buy Motorola Mobility for $12.5B "Google to Buy Motorola" MOUNTAIN VIEW, Calif. (AP) -- Google Inc. is buying cell phone maker Motorola Mobility Holdings Inc. for $12.5 billion in cash. It's by far Google's biggest acquisition and a sign the online search leader is serious about expanding beyond its core Internet business and setting the agenda in the fast-growing mobile market.

Google will pay $40.00 per share, a 63 percent premium to Motorola's closing price on Friday.

Google's Android operating system runs smartphones that compete with iPhones, BlackBerrys and Windows-based mobile devices. Motorola Mobility was separated from the rest of Motorola in January. The company has remade itself as a maker of smartphones based on Android, but has struggled against Apple Inc. and Asian smartphone makers.

"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page in a statement. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."

The acquisition has the approval of both companies' boards and is expected to close by the end of this year or early 2012. That may be overly ambitious, however, as the deal is likely to face regulatory scrutiny. It dwarfs Google's previous biggest deal, the 2008 purchase of DoubleClick for $3.2 billion, which took a year to get approval.

What Google likely wants from the acquisition is Motorola's trove of more than 17,000 patents on phone technology. Google recently lost out to a consortium that included Microsoft Corp., Apple and Research In Motion Ltd. in bidding for thousands of patents from Novell Inc., a maker of computer-networking software, and Nortel Networks, a Canadian telecom gear maker that is bankrupt and is selling itself off in pieces

Motorola has nearly three times more patents than Nortel.

In premarket trading, shares of Motorola Mobility soared 60 percent, or $14.72, to $39.19. Shares of Google, meanwhile, fell $14.68, or 2.6 percent, to $549.95.

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[ameele]

so what stocks to buy? google or motorola?

[StockMarketFunding]

@ameele Google bought Motorola's Mobile division, trading symbol MMI

[StockMarketFunding]

@ameele we're traders, we don't buy and hold in volatile markets. Fund managers may be looking to add positions to Google since it's P/E ratio is 19.23 and it's a growth and leadership stock. It's also down about $86.41 since 7/25. The trend is down, we buy calls on the lows for pops intraday.

[TheJasperkitty]

Guys the BIG story is Apple said today it is buying AT&T! Damn!

[StockMarketFunding]

@TheJasperkitty lol, i thought they bought XOM

[InfectTech]

if only i knew what you were talking about :/ im not that good with the stock market. i know the basics. invest in DOW!

[StockMarketFunding]

@InfectTech lol, we were talking about buying call options which go up when the stocks go up and go down when stocks go down. We bought 1 call that was down about 50% and made $430 in about 6 minutes, thanks for the comment. Feel free to ask on any questions you have in the future

[ameele]

@StockMarketFunding so do you think buying Google-A's is a smart thing to do right now?

[MrNWOExposed]

now they'll be able to spy on our cell phones outside of the internet :-) That should bode well for long term earnings but the street feels they paid too much so they torture the stock!

[SMFHotStocks]

They should have bought it when they were bankrupt, they wouldn't have had to pay so much!

[DirectAccessTrading]

Buy the dip sell the rip...get puts...wait for the bottom...get paid again :-)