The deal looks a bit like the joint venture between smartphone also-ran Nokia and Microsoft. Microsoft did not make an outright acquisition, but the arrangement is close. It gives Nokia an operating system other than its ancient Symbian product, and marketing dollars from Redmond. Microsoft gets a platform for its Windows wireless OS product, although the size of the Nokia platform is shrinking at an unusually rapid pace.
Most analysts have discussed the hardware aspect of the M&A move, but perhaps the more important aspect is the patent aspect. Google is effectively buying some 24,000 or so patents in the Motorola Mobility acquisition.
Perhaps the most stunning thing about the Google buyout of Motorola is the price. Google will pay $40 a share–$12.5 billion. That is a 63% premium. Before the acquisition, Motorola’s stock had fallen from $36.34 in February to its present $24.50–down 20%.
Google must see something in Motorola that no other company did. There were no other suitors knocking on the door
Douglas A. McIntyre
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