Google Puts More Icing on its Motorola Bid
Giant internet company Google showed its resolve of finalising its purchase of Motorola Mobility when it raised by 33 percent to $12.5 billion its original bid of taking over the American firm largely credited for inventing the first mobile phone.
On its latest filing before the US Securities and Exchange Commission (SEC), Google increased on Tuesday its standing offer of $37 per share to $40 in an effort to boost its chances of securing its hold on the mobile handset manufacturer.
As competition heats up on the billion-dollar mobile computing industry, Google is seen by experts as trying to follow the lead of nearest competitor Apple, which enjoys exclusive rights on its hardware and the mobile platform that powers its bestselling iPhone and iPad.
At present, Google freely distributes its Android mobile operating system and merely generates side revenues from mobile handset makers such as Samsung, HTC and LG that deploy the platform on their devices.
With its attempt to control a major manufacturing company, Google, according to experts, appears to be raising the bar of competition in the lucrative segment of the tech industry while at the same acquiring the protection of patent securities that Motorola Mobility owns.
To date, Motorola brandishes 17,500 mobile patents with another 7,500 waiting to be approved.
The two firms started their talks July this year, according to The Associated Press, and following series of discussions between top-level executives of both entities, Google transmitted on Aug. 1 an official offer to Motorola Mobility' board that amounted to $30 per share.
The bid was rejected and Motorola insisted that its market share value, while averaging at around $22 at that time, is worth $43.50 per share.
Google took the bait and the two companies sealed an agreement that fixed Motorola's stock value at $40, which should soon result to the younger but richer firm taking into its fold some 19,000 new workers.
While Google and Motorola are virtually locked into an agreement, regulators, according to industry experts, will have to put their stamp of approval on the deal. After which, Motorola will be $2.5 billion richer, thanks to the Google bonus offer of course.