Motorola Inc on Thursday said it would launch a new cell phone that uses Google software and seeks to tap into the popularity of online social networks like Facebook.

The phone, the first to emerge from Motorola's partnership with Google Inc, is viewed by Wall Street as Motorola's last big hope for revitalizing its money-losing handset business, which has lost market share to rivals like Apple Inc's iPhone.

Shares of Motorola rose more than 2 percent, helped by gains in the broader market.

The phone, which uses Google's Android software, uses software called Motoblur and is designed to simplify managing contacts and messages from online social sites, Motorola said.

An executive with Deutsche Telekom's T-Mobile USA said it will begin selling the phones, called Cliq in the United States, in time for the holidays.

(Reporting by Sinead Carew, writing by Ritsuko Ando in New York, editing by Tiffany Wu and John Wallace)

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