Motorola Mobility stockholders will vote Nov. 17 on the company's acquisition by Google for $12.5 billion. Shareholders who held stock on Oct. 11 get to vote. Since the August offer, the Motorola stock has gone from around $22 a share to $38.
November 17, 2011 is the date Motorola Mobility stockholders will vote on the company’s acquisition by Google for $12.5 billion, or $40 a share, TechCrunch reported.
Shareholders who held stock on October 11 will get to vote. Since the offer was first made in August for the consumer electronics division of Motorola, the Motorola stock has gone from around $22 a share to $38.
The acquisition by Google was looked at as being more about patents than hardware, Thom Craver noted shortly after the offer was made.
Google Android boss Andy Rubin told AllThingsD that Google would operate Motorola at “arms’ length” and that “the company didn’t buy Motorola for its hardware, but for its patents” confirming the earlier speculation. Rubin went on to say Motorola wouldn’t get any special treatment.
“But even with Rubin’s assurances and with evidence that seems to back up his claims, there are some who aren’t so sure Google can keep Motorola Mobility at arm’s length,” CNET reported.
Gartner analyst Michael Gartenberg told CNET in August, Motorola Mobility will be the search giant’s favorite, regardless of what Google executives state.
“Any way (Google) tries to couch this, there’s no doubt Motorola is the most favored player,” Gartenberg said. “If I’m a third-party vendor, I have some real concerns here.”
“There are 18 specific patents Motorola Mobility owns that can help Google battle current litigation. These patents have already been used previously when Motorola Mobility “picked a fight” with Apple, issuing three lawsuits of their own. Those lawsuits targeted more than Apple’s iPhone. It also targeted iPad, AppleTV, and even the MacBook Air. Four of those 18 patents were also used against Research in Motion, resulting in the BlackBerry manufacturer to pay royalties, too,” Craver noted.
It would seem the shareholders will vote for the sale as stock prices would likely fall dramatically if it were turned down.