Gabelli & Company Sees Motorola Mobility (MMI) Acquisition as Positive for Many, Downgrades to Hold

Gabelli & Company, Inc. today downgraded shares of of Motorola Mobility Holdings (NYSE: MMI) to a Hold rating from its previous rating of Buy following the recent spike in shares due to the bid by Google (Nasdaq: GOOG).

The firm likes that acquisition and believes that it will better position the two companies to compete with Apple (Nasdaq: AAPL), Samsung, and HTC. They are also not anticipating that any legal troubles will come from this acquisition and believes that it will close as early as the beginning of 2012.

While Google announced that the initial response from its top 5 Android licensees is supportive and positive, Gabelli & Company predicts that some may complain that Google is favoring MMI over the other companies. Google reported that it will treat MMI as a separate company from Google, but really time will only tell.

Gabelli & Company in the end anticipates that the deal will not only help Google and Motorola Mobility, but other companies who use the Android system in their products and Android users them selves.

Shares of Google are trading down roughly 2.15 percent as shares of MMI trade down 0.29 percent following yesterdays rise of over 55 percent.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
• Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
• Deere (DE) PT Raised to $585 at JPMorgan