Google plans to acquire Motorola Mobility for $12 billion

 Google Inc has inked an agreement with Motorola Mobility, wherein it would acquire the latter for $12.5 billion.

The transaction was unanimously approved by the board of both the companies.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility?s stockholders. The transaction is expected to close by the end of 2011 or early 2012.

Close industry watchers seem optimistic about the deal, especially with respect to Google?s fortunes. Abhishek Chauhan, senior consultant, ICT Practice, Frost & Sullivan,South Asia & Middle East, for instance, feels that the deal is going to boost Google’s forte in the wireless space and make it a strong player in the mobility arena. However, he says that with Android at a strong 50 percent market share and Motorola’s 20K + patents, Google may have a difficult time convincing the regulators.