Google (GOOG) Shareholder's Hatred of the Motorola Mobility (MMI) Deal Has Turned to Disgust
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There isn't much to hate about Google (Nasdaq: GOOG), the company that vows to "Do No Evil." However, the recent deal to acquire Motorola Mobility (NYSE: MMI) maybe changing some opinions.
Since the acquisition was announced August 15th, shares of Google are down over $50 per share, or 9 percent.
Google shareholders hatred of the deal has turned to downright disgust after it was disclosed Thursday Google will have to pay Motorola Mobility a $2.5 billion break-up fee if they walk from the deal or can't get approval.
In its 8-K this morning, Google said:
Under certain other circumstances principally related to a failure to obtain required antitrust clearances prior to the outside date (as defined in, and subject to extensions pursuant to, the Merger Agreement) and subject to certain other conditions, the Merger Agreement provides for Google to pay to Motorola a fee of $2.5 billion upon termination of the Merger Agreement.
The breakup fee is an unprecedented 20 percent of the deal price. As a compassion, AT&T's (NYSE: T) breakup fee for the T-Mobile deal is 7.6 percent. The average breakup fee on deals announced this year is around 4 percent.
Google will be entitled to a fee of $375 million if Motorola Mobility walks.
Since the acquisition was announced August 15th, shares of Google are down over $50 per share, or 9 percent.
Google shareholders hatred of the deal has turned to downright disgust after it was disclosed Thursday Google will have to pay Motorola Mobility a $2.5 billion break-up fee if they walk from the deal or can't get approval.
In its 8-K this morning, Google said:
Under certain other circumstances principally related to a failure to obtain required antitrust clearances prior to the outside date (as defined in, and subject to extensions pursuant to, the Merger Agreement) and subject to certain other conditions, the Merger Agreement provides for Google to pay to Motorola a fee of $2.5 billion upon termination of the Merger Agreement.
The breakup fee is an unprecedented 20 percent of the deal price. As a compassion, AT&T's (NYSE: T) breakup fee for the T-Mobile deal is 7.6 percent. The average breakup fee on deals announced this year is around 4 percent.
Google will be entitled to a fee of $375 million if Motorola Mobility walks.
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