Google upped its bid for Motorola by $3B in one day to close deal
In order to secure its purchase of Motorola and the company's collection of patents, Google outbid itself by 33 percent, or $3 billion, in a single day to reach an agreement.
Google's aggressive strategy to acquire Motorola was revealed in filings made with the U.S. Securities and Exchange Commission this week. In detailing Google's bidding strategy, The Wall Street Journal noted that the extra $3 billion paid "underscores the pressure the search giant was under to beef up its patent portfolio and protect its promising Android smartphone franchise from a growing number of legal challenges."
Google initially offered $30 per share on Aug. 1, but Motorola rejected the offer and suggested a price of $43.50. Then on Aug. 9, Google offered $37 a share, while Motorola asked for $40.50.
On that same day, Google again upped its bid to $40 per share, increasing its standing offer by $10 per share in a single day. On Aug. 15, Motorola agreed to Google's offer, and a sale price of $12.5 billion was formally announced.
Google's massive bid increase came in spite of the fact that the search company was the only party in talks with Motorola. The maker of phones like the Droid Bionic and Atrix 4G, both of which compete with Apple's iPhone, opted to negotiate exclusively with Google.
According to the Journal, Motorola's board decided that talking only with Google would be advantageous, because a public auction wasn't expected to result in a higher price, while a failure to sell would be "highly detrimental" to the company.
Speaking out on the deal, Google Chief Executive Larry Page said in August that he feels "anticompetitive" patent litigation on the parts of Apple and Microsoft deemed the proposed purchase of Motorola necessary. The Google-Motorola deal must still be granted regulatory approval before it can be finalized.
The acquisition of Motorola gives Google some 17,000 issued and 7,500 filed patents, which some believe will give the search company more leverage in the lawsuit-saturated Android landscape. A number of those lawsuits are between Motorola and Apple, with each accusing the other of patent infringement.
Just days after the Google-Motorola deal was announced, Apple Chief Financial Officer Peter Oppenheimer commented on it with: "$12.5 billion is a lot of money." Apple, in its history, has not engaged in the type of blockbuster acquisitions taken on by Google, and none of Apple's purchases have crossed even a half-billion dollars.
Google's aggressive strategy to acquire Motorola was revealed in filings made with the U.S. Securities and Exchange Commission this week. In detailing Google's bidding strategy, The Wall Street Journal noted that the extra $3 billion paid "underscores the pressure the search giant was under to beef up its patent portfolio and protect its promising Android smartphone franchise from a growing number of legal challenges."
Google initially offered $30 per share on Aug. 1, but Motorola rejected the offer and suggested a price of $43.50. Then on Aug. 9, Google offered $37 a share, while Motorola asked for $40.50.
On that same day, Google again upped its bid to $40 per share, increasing its standing offer by $10 per share in a single day. On Aug. 15, Motorola agreed to Google's offer, and a sale price of $12.5 billion was formally announced.
Google's massive bid increase came in spite of the fact that the search company was the only party in talks with Motorola. The maker of phones like the Droid Bionic and Atrix 4G, both of which compete with Apple's iPhone, opted to negotiate exclusively with Google.
According to the Journal, Motorola's board decided that talking only with Google would be advantageous, because a public auction wasn't expected to result in a higher price, while a failure to sell would be "highly detrimental" to the company.
Speaking out on the deal, Google Chief Executive Larry Page said in August that he feels "anticompetitive" patent litigation on the parts of Apple and Microsoft deemed the proposed purchase of Motorola necessary. The Google-Motorola deal must still be granted regulatory approval before it can be finalized.
The acquisition of Motorola gives Google some 17,000 issued and 7,500 filed patents, which some believe will give the search company more leverage in the lawsuit-saturated Android landscape. A number of those lawsuits are between Motorola and Apple, with each accusing the other of patent infringement.
Just days after the Google-Motorola deal was announced, Apple Chief Financial Officer Peter Oppenheimer commented on it with: "$12.5 billion is a lot of money." Apple, in its history, has not engaged in the type of blockbuster acquisitions taken on by Google, and none of Apple's purchases have crossed even a half-billion dollars.
Comments
The more I digest it, the more the Brothers Rimm look like geniuses.
Now, if you report tomorrow, that the true story was really that they had Page on one and Brin on the other phone and they were outbidding each other... I'll buy it.
Speaking out on the deal, Google Chief Executive Larry Page said in August that he feels "anticompetitive" patent litigation on the parts of Apple and Microsoft deemed the proposed purchase of Motorola necessary.
"we're not evil, it's just that you guys are making us that way."
sure, larry, sure.
Apple, in its history, has not engaged in the type of blockbuster acquisitions taken on by Google, and none of Apple's purchases have crossed even a half-billion dollars.
Apple contributed $2.6 Billion to the Nortel patent purchase. I think that's more than half a billion ;-)
Google losing another bid would not have looked good... and it's one of the last large patent portfolio left. They might give Android free to HTC, Samsung, but it's not free if they got to pay royalties.
I would not dare accuse Apple of anything in here, simply stating facts that the patent model is deficient. If I were Apple, I would also sue anything that nearly looks like my products, if i had that much chances to win or settle. But since i am a consumer, i can only take the hit and fork up more money on products to pay those lawyers and royalties.
Apple contributed $2.6 Billion to the Nortel patent purchase. I think that's more than half a billion ;-)
By acquisition they mean buying a running company. They've purchased lots of items for more than the half billion AI is quoting. Acquisitions can be very tricky. Purchasing items on the other hand is pretty straight forward.
Hmmmm...
Let me get this straight.
1. MotoMobile only talks to Google.
2. Motomobile determines that it will be highly detrimental to the company if they don't sell.
3. Google still outbids itself by 33 1/3% even though it looks as if the cards are stacked in their favor.
Am I missing something?!
Mr Page never bought Moto for the patents, its patents are mainly useless since they never were able to reinforce them.
Google bought Moto, BECAUSE Moto was beginning to sue every single droid manufacturer, and..., Google could not afford to have the development AND expansion of Android derailed by Moto, considering that Google has (had) not valid patents, or very little of its own, to defend it. Therefore to avoid any cataclysm Google bought Moto for only that reason. Mr Page is a cynic when referring to noncompetitive monopoly of Microsoft and Apple. Apple is NOT using any of the bought patents to litigate..., only their own IP.
Funny that many Android manufacturer are paying Microsoft royalties...... indeed !!
"According to the Journal, Motorola's board decided that talking only with Google would be advantageous, because a public auction wasn't expected to result in a higher price, while a failure to sell would be "highly detrimental" to the company."
Hmmmm...
Let me get this straight.
1. MotoMobile only talks to Google.
2. Motomobile determines that it will be highly detrimental to the company if they don't sell.
3. Google still outbids itself by 33 1/3% even though it looks as if the cards are stacked in their favor.
Am I missing something?!
Yes. MMI came to Google and said "buy us or we will destroy Android." Google said "um, ok" and made the offer that they thought was necessary to prevent Android's death. The SEC report was written after the fact in such a way as to head off MMI shareholder lawsuits about the sale.
Yes. MMI came to Google and said "buy us or we will destroy Android." Google said "um, ok" and made the offer that they thought was necessary to prevent Android's death. The SEC report was written after the fact in such a way as to head off MMI shareholder lawsuits about the sale.
Source.
Am I the only one thinking that Apple should buy Yahoo, revamp it, and stick to Google.
You mean "stick it to Google."
First, Apple would never buy Yahoo. They don't believe in wasting money like that. And, the desktop search business is not interesting to them. They have iAds, but we don't know how successful they are compared to others like Google's AdMob.
Second, my guess is that Apple believes Android will not be much of a competitor in the long run.
Still, you make a good point (I think) that Google is able to spend (or waste) money because of its position in desktop search. If that comes under attack, Google will sink fast.
Source.
FOSS patents
FOSS patents
Oh give me a break.
This is an op-ed piece. Mueller has so many "possiblys" and "could haves" in that article that you can see it is a made up piece of bunk. I honestly wonder sometimes if Florian and Daniel are the same two people.
Apple is not afraid of the MotoMobile patents... even your man Florian said as much... so does that mean that Google is so stupid as to believe that they have to buy MotoMobile to save Android.
Threats my ass.
Show me a passage in the filing that uses the word "threat" and then I'll agree with you.
[on edit: Motomobile is such a small piece of the Android pie. Google had to worry about the reaction from the big guns, Samsung, HTC and LG, if they bought MMI. The MMI patnts weren't going to protect Google... Apple already proved that.]