Google faces USD 2.5 bln Motorola break-up fee - report

Nieuws Mobiel Wereld 16 AUG 2011
Google faces USD 2.5 bln Motorola break-up fee - report
Google will have to pay Motorola Mobility Holdings a reverse break-up fee of USD 2.5 billion if it decided to abandon its proposed USD 12.5 billion acquisition of Motorola Mobility, reports Reuters citing an unnamed source close to the deal. The break-up fee would be 20 percent of the total value of the deal. If Motorola decided not to proceed with the deal, it would have to pay a break-up fee of USD 375 million to Google, or 3 percent of the deal value.

Categories:

Mobiel

Companies:

Google,  Motorola Mobility

Regions:

Wereld

Tags:

Devices, Company, Corporate, Handsets, M&A buyouts & divestments

Related Articles

WERELD 29 SEP 2011

US extends review of Google takeover of Motorola

Federal antitrust regulators have asked for more information about Google's planned USD 12.5 billion acquisition of Motorola Mobility, Reuters reports. In a filing with the US Securities and Exchange Commission, Motorola said it received a request for "additional information and documentary material" from the US Department of Justice's antitrust division. Motorola said Google also received a similar request and repeated its expectation the deal would close by the end of 2011 or early 2012.

WERELD 19 AUG 2011

Android could be top mobile ad OS by yr-end - InMobi

Android will likely be the top global mobile ad platform by the end of the year, explaining Google's move to acquire Motorola Mobility, mobile network ad network revealed in its latest Mobile Insights Report: Global Edition Quarter Ending July 2011. "At the current growth trends, Android is expected to become the top mobile platform in the ad ecosystem by the end of the year and Google is clearly protecting it from competitive threats with the IP assets of Motorola Mobility," the study said. InMobi served 1

WERELD 18 AUG 2011

Motorola deal could hurt Android phone makers - Nokia CEO

Nokia warned that Google's acquisition of Motorola could negatively affect mobile manufacturers dependent on Google's Android software, Reuters reported. Nokia has teamed up with Microsoft for mobile phone software, while Samsung, HTC and Motorola went for Android. Now, concerns are rising that the acquisition deal could see Motorola getting preferential treatment over competitors Samsung and HTC, a sentiment echoed by Nokia CEO Stephen Elop. "If I happened to be someone who was an Android manufacturer or a

WERELD 17 AUG 2011

Google's takeover of Motorola: not just about patents and Android

Google has agreed to buy Motorola Mobility for USD 12.5 billion, including cash of around USD 3 billion. The price implies a premium of 63 percent, likely meant to make it a 'knock-out' bid shareholders would find difficult to refuse. Management has already backed the offer, leaving it up to the shareholders and regulators to complete the deal. The initial market reaction (Google shares little changed, Motorola up 60%) suggests that Google shareholders are fairly neutral and Motorola investors don't expect

WERELD 16 AUG 2011

Google koopt Motorola niet alleen vanwege Android en patenten

Google neemt Motorola Mobility over voor 12,5 miljard US dollar in contanten, inclusief een kaspositie van 3 miljard. De prijs impliceert een premie van 63 procent, waarschijnlijk bedoeld om een 'knock-out bid' te doen waar de aandeelhouders geen nee tegen kunnen zeggen. De ondernemingsbesturen zijn al akkoord, zodat het nu van de aandeelhouders van Motorola en de toezichthouders afhangt. De initiële beursredactie (Google vlak, Motorola +60%) suggereert dat de Google-aandeelhouders niet erg positief of nega

WERELD 15 AUG 2011

Google koopt Motorola Mobility voor 12,5 miljard US dollar

Google neemt Motorola Mobility over voor 12,5 miljard US dollar in contanten, ofwel 40,00 dollar per aandeel. Dat impliceert een premie van 63 procent ten opzichte van de slotkoers van afgelopen vrijdag. De besturen van beide ondernemingen stemmen unaniem in met de overname. Wel moeten de aandeelhouders nog akkoord gaan. Men verwacht afronding van de deal eind 2011 of begin 2012.

WERELD 15 AUG 2011

Google to acquire Motorola Mobility for USD 12.5 bln

Google and Motorola Mobility have entered into a definitive agreement under which Google will acquire Motorola Mobility for USD 40 per share in cash, or a total of about USD 12.5 billion, a premium of 63 percent to the closing price of Motorola Mobility shares on 12 August of this year. The transaction was unanimously approved by the boards of directors of both companies. The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhan

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.