The fortunes of Motorola appear to be looking bright with Google revealing that they have agreed to purchase Motorola Mobility for $12.5 billion. The ‘light at the end of the tunnel’ seems to be the perfect adage for Motorola as they recently reported quarter 2 losses of $56 million for 2011. Google says that it will acquire Motorola Mobility for $40.00 per share in cash and a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011.

Google and Motorola join forces

Google and Motorola join forces

According to Google CEO, Larry Page, “Motorola Mobility's total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

This transaction was unanimously approved by both companies. Sanjay Jha, CEO of Motorola Mobility, said, “This transaction offers significant value for Motorola Mobility's stockholders and provides compelling new opportunities for our employees, customers and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”

With the acquisition of Motorola, Google can now combine hardware as well as software much akin to the likes of Apple’s iOS. Speaking about Android on other manufacturers, Andy Rubin, Senior Vice President of Mobile at Google, said, “We expect that this combination (with Motorola) will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

Let us know your thoughts on Google acquiring Motorola Mobility and how it would affect the Android ecosystem in the comments below.

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