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

Boosting Productivity with a Healthy Software Stack

By: Special Guest    6/30/2016

If you haven't been monitoring the health of your software, it may be time for your stack to get a checkup.

Read More

Using Drones? Know the Rules

By: Special Guest    6/29/2016

Using a drone for your business, or as a hobby, means complying with requirements which are in constant flux or that you may not know about.

Read More

The Problems with Amazon's Dash Buttons

By: Rob Enderle    6/29/2016

The news this week is that Amazon is going to massively expand their Dash Button program, which hasn't sold well, to include more buttons. This increa…

Read More

6 Insurance Companies Investing in Wearable Technology

By: Lindsey Patterson    6/27/2016

Wearable fitness devices are growing in popularity, Tech research firm Gartner says that sales will grow by 18.4 percent this year. Over the past seve…

Read More

Facebook Closes 50 Million Dollar Deal for Live Streaming

By: Andrew Bindelglass    6/24/2016

Facebook seems like it is ready to launch a fledgling version of Facebook Live in the near future, Osofsky said. "We have an early beta programm for a…

Read More