Google to acquire Motorola Mobility in $12.5 billion deal

Mountain View, Calif. -- A Monday report by the Associated Press said that Google is acquiring cell phone maker Motorola Mobility Holdings for $12.5 billion in cash, a transaction that is Google’s biggest to date.

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, and has re-emerged as a maker of Android-based smartphones.

“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 is expected to close by the end of this year or early 2012.