Google's Bid for Motorola Mobility Reportedly Increased during Negotiations

By Ed Silverstein September 15, 2011

Google was willing to pay 33 percent more – to $12.5 billion – for Motorola Mobility Holdings after offers and counter-offers during what appears to be some intense negotiations, according to news reports.

The two companies spent two weeks negotiating the deal, according to Reuters, citing information from a new filing from the U.S. Securities and Exchange Commission. Early in the process, Google was willing to pay $30 per Motorola share but then paid $40 a share. The $40 per Motorola share, announced on August 15, was a 63 percent premium to the company’s close on August 12.

The boards of both companies have approved the deal, according to TechZone360.

TechZone360 also reported that Motorola Mobility was in talks with several other interested parties, including Microsoft.  The talks were going on for a lengthy period of time.

The main draw for Google with Motorola appears to be its numerous patents. “The deal it struck gives it access to Motorola Mobility’s strong portfolio of 17,000 current patents and 7,500 patent applications across wireless standards and non-essential patents on wireless service delivery,” Gigaom said.

Microsoft was also interested in Motorola Mobility’s numerous patents. The patents, in Microsoft’s hands, could have hurt Google’s Android operating system, Forbes said.

The Google-Motorola Mobility deal is subject to closing conditions, such as regulatory approvals in the United States, the European Union and other locations, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012, according to media reports.

“Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” Larry Page, CEO of Google, said in a company statement when the deal was announced. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers.”



Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Want a Big Cable Merger? Good Luck Charter!

By: Doug Mohney    5/29/2015

Charter Communications wants to buy both Time Warner Cable and Bright House Networks in a $67 billion deal. It will create an entity second in size to…

Read More

Rising Mobile Broadband Accessibility and Usage Impacting Global Social and Economic Growth

By: Laura Stotler    5/28/2015

Information and communication technologies (ICTs) are having a direct impact on social and economic development, according to interesting new research…

Read More

Avago Technologies Acquisition of Broadcom: Let The Chips Fall Where They May

By: Peter Bernstein    5/28/2015

With a combined valuation of roughly $77 Billion and revenues of $15 Billion once the transaction closes the new Avago will have the human and technic…

Read More

Digital Ad Viewability: The New Metric for Monetization

By: Tara Seals    5/28/2015

Verizon Communications raised a few eyebrows earlier this month when it announced plans to acquire AOL for $4.4 billion. It seemed a lot to pay just t…

Read More

Future Watch Apps May Surprise You

By: Mike Russo    5/27/2015

If there's one thing that's abundantly clear about the Apple Watch, it's that this isn't your grandpa's timepiece. Oh, it tells time, sure. The rest i…

Read More