Sept. 13 (Bloomberg) -- Google Inc.’s bid for Motorola Mobility Holdings Inc. climbed by 33 percent from its opening offer before being accepted by the handset maker, a Motorola Mobility filing released today shows.
On Aug. 1, Google made an initial offer of $30 per share, a bid that was countered by Motorola Mobility’s advisers with word that it was seeking $43.50 per share, the document shows. Google raised its bid to $37 a share on Aug. 9, and on the same day lifted it again, to $40, according to the filing with the U.S. Securities and Exchange Commission.
Google, maker of the Android mobile-phone platform, agreed to pay $12.5 billion, or $40 a share, to try and gain more clout as it battles Apple Inc.’s iPhone for wireless market share. Motorola Mobility, under pressure from activist investor Carl Icahn to shift strategy, gives Google more than 17,000 patents it can leverage in negotiations with competitors such as Apple.
Direct discussions between the two companies about the future of Motorola Mobility’s patent portfolio had begun in early July following Google’s failed bid to buy Nortel Networks Corp.’s patents, according to the document. By July 21, discussions led by Motorola Mobility Chief Executive Officer Sanjay Jha and Andy Rubin, senior vice president of mobile at Google, had moved on to the possibility of Google buying Libertyville, Illinois-based Motorola Mobility.
On Aug. 10, Motorola Mobility’s board met with its advisers, including Frank Quattrone’s Qatalyst Partners LLC, to discuss the possibility of soliciting other bids before deciding to proceed with negotiations just with Mountain View, California-based Google. The companies entered into their merger agreement on Aug. 15 and announced it the same day, the filing shows.
--Editors: Jillian Ward, Stephen West
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