Following government approval, Google will pay $12.5 billion for Motorola’s cellular/tablet business.

In an announcement, early this morning, Google says they are buying Motorola Mobility Holdings for $12.5 billion.  That comes out to $40 per share of MMI stock.  

Motorola Mobility is the cellular phone company that was split from the old Motorola  Corporation earlier this year.

The purchase will make Google – creator of the Android mobile operating system – a true cell phone and software manufacturer joining the ranks of Apple, Research in Motion and HP.  

Microsoft does not make their own Windows Phones. but has recently partnered with Nokia as well as having licensed a number of manufacturers produce WP7 handsets.

In a blog posting, this morning, Google CEO Larry Page said that the acquisition would not change Google’s commitment to keep the Android operating system as an open source platform.  

Page also noted that with the purchase Google also gets Motorola’s large warehouse of patents – an important weapon in possible future skirmishes with Apple, Microsoft and others.

Google says they plan to keep Motorola as a separate business.

The acquisition will have to be cleared of any possible anti-trust problems by the Federal Trade Commission who are currently looking into several areas of Google’s businesses.

Source: Know Your Cell – Cell Phone News, Reviews, Features and More