According to Reuters, Google will now pay 33% more than its previously offered $12.5 billion to acquire Motorola Mobility. The report came from a regulatory filing on Tuesday, which states that both companies have been in negotiations for over two weeks and finally, the deal has been finalized.
Last month, Google Inc. offered $12.5 to buy Motorola Mobility, which was $30 for every share. This offer was made on 1st August by Google, after it lost Nortel patents auction to Apple, Microsoft and others. So, Google needed massive patent portfolio of Motorola to compete against other tech giants in the market.
Qatalyst Partners of Frank Quattrone was the advisors of Motorola in this deal. On August 5, they advised Motorola to reject the first bid from Google and ask for a price of $43.50 per share. Motorola filed this new bid price with the US Securities and Exchange Commission then.
Four days later, Google put another offer with a raised offer of $37 per share. Motorola’s CEO, Sanjay Jha replied that he will recommend the company to consider Google’s offer if they raised their offer to at least $40.50 or higher. In reply, Google raised its offer to $40 per share and proposed to announce merger by August 14 on the same day.
Both companies announced the merger on August 15 at a price of $40 every Motorola share. This latest price was 63% premium, to company’s previous day close.
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