Google to become cell phone company?

Google will acquire Motorola Mobility Holdings, the company announced Monday, putting the company in smartphone hardware and increases competition with Apple, Microsoft and other companies.

Google now wants to be known as more than a software business, and combining with Motorola will not only supercharge Android, but will offer consumers more choices and advanced experiences.

Google will buy the company for about $12.5 billion dollars, or at $40 per share in cash. Both companies have a history of working together since Android debuted in 2008 and HTC was the first manufacturer to produce an actual device for Google's mobile platform. Motorola's 2009 Droid release was the first true Android handset to stack up against competitors.

Google claims Android will remain open to all manufacturers. The Android operating system is currently the most widely used mobile operating system in the United States and nears the top spot for the highest mobile operating system in the world.