Google announced this morning that it was going to buy Motorola Mobility Holdings for $40 per share in cash for a total of $12.5 billion, which is a 63 per cent premium on the closing price of the Motorola Mobility shares on Friday 12th of August.
The acquisition is unlikely to face an investigation from the Federal Trade Commission given that Motorola's market share lags well behind the likes of Samsung and Nokia globally.
Google has stressed that the acquisition will not change anything - for now - in the way the company handles the Android ecosystem which will continue to remain open. Motorola Mobility will still run as a separate business and will remain an Android licensee.
The press release only mentions that the acquisition will "supercharge" the Android ecosystem and will "enhance competition in mobile computing" although we're unsure what to make out of it.
All three statements mentioned in the document refer to how Google is keen to keep Android open and how Motorola still wants to deliver "outstanding mobility solutions".
"Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere," Google CEO Larry Page stated.
Pre-market transactions saw Google shares fall by nearly three per cent to under $550.