Instant view: Google to buy Motorola Mobility

NEW YORK (Reuters) - Internet search giant Google Inc said it will buy Motorola Mobility Holdings Inc for about $12.5 billion in cash.

At $40 a share, the offer represents a 63 percent premium to Motorola Mobility's Friday close on the New York Stock Exchange.

COMMENTS:

JOHN STRAND, FOUNDER AND CEO OF STRAND CONSULT, COPENHAGEN

"I don't believe that Google wants to compete against Samsung, HTC, LG and Sony Ericsson.

"I think Google will withdraw from the hardware market. They get patents, software and people with knowledge about the mobile industry and sell the Motorola brand to a Chinese manufacturer.

COLLIN GILLIS, ANALYST AT BGC PARTNERS IN NEW YORK

"It's a deal that will take time to pay off.

"They have a lot of cash, they want to chase after profit- Android has not been profitable.

"What is says is that Google wants to provide a total experience that's hardware and software (like Apple).

"If you're RIM, you just lost a potential acquirer. "They do not need to do this- they're just chasing new sources of profit.

"Motorola Mobility is not that good of a business. Hardware alone is not a money maker.

FRANCISCO JERONIMO, ANALYST AT IDC, LONDON

"Samsung and HTC will now push further for Windows Phone as this move is making clear for them that they need to diversify their platform strategy.

On the other hand this gives Google a huge patent portfolio as Motorola was a pioneer in the GSM."

(Reporting by Tarmo Virki in Helsinki and Phil Wahba in New York. Compiled by Christopher Kaufman)