Google to buy Motorola in £7.7 billion deal

Google has announced a deal to buy out Motorola Mobility for $12.5 billion (£7.7 billion).

Both the boards for both companies unanimously approved the deal which is due for completion by the end of this year or early next.

Earlier this year, Motorola split into two separate companies, Mobility, which develops and manufactures mobile phones, and Motorola Solutions, which covers wider technologies for corporate customers and governments.

Shares in Motorola jumped 56% by the close of trading in New York yesterday to $38.13.