Google vs. Motorola [Infographic]
To me, the share price Google (NasdaqGS: GOOG ) acquired Motorola (NYSE: MMI) with is amazing; while Motorola market share price was around the $25 mark, Google has chosen to pay $40/share, a 63% premium! I have my trust in Google, but to me, paying that much premium on Motorola share was little too much, many investors felt the same I believe, Google share dropped around 6% during the market’s next day session.
The acquisition may very well reveal some Google hidden plans for future products to be released, or may be some Android enhancements, especially when you think of what Motorola is offering today, a very rich patent portfolio, specifically in the 4G area.
Are we set for another Google product out of that acquisition? In which specific technology area will that be? And the more important question as an investor is, will that new product (or products) justify the $12.5 billion spent on this acquisition?
- Infographic SOURCE: The Daily
- Google Investor Relations, Google to Acquire Motorola Mobility