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S&P downgrades Google stock after Motorola deal

(Paul Sakuma)

August 17, 2011 12:00:00 AM PDT
Standard & Poor's has downgraded Google's stock after the company bought Motorola Mobility.

The S&P says the decision to buy the company increases the risk to the company and its shares.

Google Inc. announced it was buying Motorola Mobility on Monday for $12.5 billion.

S&P is now recommending that stockholders sell their shares. It also cut its price target for Google's stock by $200 to $500.

Google finished trading Tuesday at $539.