Google price for Motorola unveiled

Google raised its offer for Motorola Mobility Holdings by 33 per cent to $12.5bn (£7.9bn) over two weeks of negotiations between the two companies, according to a regulatory filing.
By The Newsroom
Published 15th Sep 2011, 08:54 BST

Google originally offered $30 for every Motorola share on August 1 – but eventually paid $40 – as the internet powerhouse sought Motorola’s massive patent portfolio, after losing out on the Nortel patent auction to a consortium including Apple and Microsoft.

Early last month, Frank Quattrone’s Qatalyst Partners, who advised Motorola on the deal, suggested the company reject the initial bid and seek an offer of $43.50 a share instead, according to a filing by Motorola with the US Securities and Exchange Commission.

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On August 9, Google came back with an offer of $37 per share, but Sanjay Jha, Motorola’s chief executive, said he would be prepared to recommend that the company consider accepting an offer of $40.50 a share or higher.

On the same day, Google raised its price to $40 per share, and proposed to start due diligence and announce the merger by August 14.

The companies ultimately announced the merger on August 15, settling at $40 per Motorola share – a 63 per cent premium to Motorola’s previous trading day close.

Meanwhile, Intel and Google have launched a development partnership, the latest effort by the world’s dominant maker of PC microprocessors to break into the booming smartphone market.

Related topics:GoogleMicrosoft