Google Buying Motorola Mobility For $12.5 Billion (updated)
Google is buying cell phone maker Motorola Mobility Holdings for $12.5 billion in cash.
It's by far Google's biggest acquisition to date and a sign the online search leader is serious about expanding beyond its core Internet business. Google will pay $40.00 per share, a 63 percent premium to Motorola's closing price on August 12. Motorola Mobility was separated from the rest of Motorola in January. The company has remade itself as a maker of smartphones based on Google's Android software, but has struggled against Apple Inc. and Asian smartphone makers. The acquisition has the approval of both companies' boards and is expected to close by the end of this year or early 2012.
Google agreed to pay Motorola Mobility $2.5 billion if it fails to close the purchase under certain circumstances, a fee more than six times the typical amount. On a percentage basis, the fee is more than triple the $3 billion AT&T is offering as part of its $39 billion bid for Deutsche Telekom AG’s T-Mobile USA, the largest deal this year. Both AT&T and Google face increasing scrutiny as regulators examine whether their acquisitions are stifling competition in the telecommunications and Internet industries. Motorola Mobility would pay a $375 million breakup fee if it decides not to sell to Google.
Additional coverage:
Google’s Big Bet on the Mobile Future (NYTimes)
http://dealbook.nytimes.com/2011/08/15/googles-big-bet-on-the-mobile-fut...
In the World of Wireless, It’s All About Patents (NYTimes)
http://dealbook.nytimes.com/2011/08/15/in-the-world-of-wireless-its-all-...
Google's $12.5 Billion Gamble (WSJ)
http://online.wsj.com/article/SB1000142405311190339290457650995382143796...
Google Primes Patent Pump (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651061220870619...
Friend or Foe? Tie-Up Turns Partners to Rivals (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651042257630267...
Motorola Chief Gets $62 Million If He Exits (WSJ)
http://online.wsj.com/article/SB1000142405311190348090457651077281728431...
Google snaps up Motorola Mobility (FT)
http://www.ft.com/cms/s/2/e906bedc-c734-11e0-a9ef-00144feabdc0.html
Google Buying Motorola Mobility For $12.5 Billion Google-Motorola Deal Upends Mobile Market (WSJ) Google-Motorola deal to face scrutiny (Politico) Google to Acquire Motorola Mobility (NYTimes) Google agrees to acquire Motorola Mobility (WashPost) Google to buy Motorola Mobility for $12.5 billion (LATimes) Google to Buy Motorola Mobility for $12.5 Billion to Rival Apple (Bloomberg) Google, needing patents, buys Motorola wireless for $12.5 billion (ars technica) Google To Buy Motorola Mobility For $12.5 Billion: Big Step In Apple Battle (paidContent.org) Google acquires Motorola Mobility to 'supercharge' Android, battle Apple (Connected Planet) Google Deal Said to Have $2.5 Billion Reverse Breakup Fee (Bloomberg - breakup fee))