Home » Uncategorized » Google to Motorola Mobility: Don’t solicit other offers besides ours

Google to Motorola Mobility: Don’t solicit other offers besides ours

Google’s $12.5 billion offer for Motorola Mobility was taken one step further with Motorola Mobility agreeing not to solicit other offers. Motorola Mobility has signed the terms of a merger agreement published today, which states that all employees and directors of the company as well as outside advisers and legal counsel have to stop any solicitation of other proposals as of Aug. 15. Despite this, the agreement states Motorola’s board has a fiduciary duty to consider any unsolicited superior proposal it may receive. The contract goes on to say that Google will pay Motorola Mobility $2.5 billion if the deal falls through, and Motorola Mobility will pay $375 million if it decides not to sell to Google.

Google and Motorola have both stressed that the deal was approved unanimously by both companies’ boards of directors. However, not everyone is jumping for joy over the deal. Motorola Mobility and CEO Sanjay Jha were sued this week by shareholder John W. Keating.

“The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” Keating wrote in his complaint, filed in Cook County, Illinois Circuit Court. Keating is seeking class-action status and wants the deal to be rejected by regulatory authorities.

Google has insisted there won’t be a Moogle or Googorola, as Motorola will remain a separate company. They’ve also stated that Android will remain open, and Motorola won’t become the only Android dealer. Despite their assurances, there’s no doubt Android partners like Samsung and HTC are feeling nervous about the deal.

With the deal, Google gains not only a foot in the hardware business, but also Motorola’s vast patent portfolio. With more patents under their belt, Google hopes to strengthen the Android brand over rivals like Apple who are embroiled in patent-related lawsuits. Google stated it will, “enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.” As for whether Keating will have any effect on the deal, that’s for the courts to decide. We’ll keep you posted.

About Silvia Pikal

Check Also


Try Oculus Rift And Wii To Roam Around On The Back To The Future Hoverboard

Check out how you can fly in virtual space by using an Oculus Rift and a Wii Balance Board.


Amazon Appstore for Android Holiday Deals, Including Free Apps

There are tons of deals from the Amazon Appstore that will be offered starting now and throughout the holiday shopping season. They say that they will have "hundreds of titles that are eitehr free... or available between 50-90% off" the regular price.


Black Friday: Google Play Store Apps, Games and Content on Sale All Weekend

Case in point, if you head over to the Google Play Store right now, you'll find that Google is celebrating all Cyber Weekend with discounts on all sorts of content. This includes many popular apps and games


Black Friday Deal: Samsung Galaxy Tab 3 10.1-Inch for $100 Off

Did you manage to score any epic Black Friday deals this morning? Are you still ...


Arduino Co-Creator Releases Plans for $200 DIY Mobile Phone

Mellis was one of the people who came up with the now hugely popular Arduino platform and now he has come up with plans for people to build their own cell phone for about $200 in parts.


No Discounts for Apple Black Friday, Just Free Gift Cards

If you were hoping to save yourself some cash as you brave the Black Friday shopping crowds, you'll want to go somewhere other than the official Apple Stores.