Motorola Mobility shares jumped more than 58% on Monday to better than $38.50 per share after Google announced that it would pay $40 per share in cash for the mobile phone giant. Shares of Google initially fell by 3% in the pre-market on the news, but have since rallied to around even during early trading.
Interestingly, shares of beleaguered handset makers Research in Motion and Nokia are also trading higher on the news, as investors speculate that the Google-Motorola deal may prompt further consolidation in the mobile space. The latter was trading up more than 5% and the former up more than 11% in pre-market trading.
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Microsoft would seem the most obvious company to be on the hunt for a big mobile acquisition following the deal. The software giant has already signed a billion dollar deal with Nokia to get the manufacturer using Windows Phone 7 as its mobile operating system of choice