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

Microsoft Research Project Allows for Inexpensive 3D Scanning from a Smartphone

By: Christopher Mohr    8/27/2015

It is now possible to perform 3D scanning from a smartphone, without additional hardware or an Internet connection, thanks to a new Microsoft Research…

Read More

Amazon's Scaled Back Consumer Device Efforts, Dash Button, and More

By: Paula Bernier    8/27/2015

Word is that Amazon is scaling way back on its consumer devices efforts, having let go of dozens of Lab126 engineers who worked on its Fire phone, acc…

Read More

The 4K War is Brewing, but Don't Expect a Crowned Winner

By: Special Guest    8/27/2015

The hype around 4K Ultra HD video is growing and we're seeing it gain traction in real ways. From the NFL Network and CBS using 4K cameras to capture …

Read More

Wallet Wars Part 2: Thanks to EMV, the Force is with Mobile Wallets

By: Special Guest    8/26/2015

In December 2015, when "Star Wars: The Force Awakens" hits movie theatres across the U.S., a very different type of force will 'awaken' the mobile wal…

Read More

Major Automakers Forge Alliance to Combat Cyberattackers

By: Joe Rizzo    8/25/2015

If you take a few minutes to think about what hackers go after, you'll realize that it is anything that has an Internet connection. Thanks to the Inte…

Read More