Friday, August 19, 2011

Google to Pay $2.5 billion if Regulators Thwart Motorola Mobility Acquisition

Google Lampung - Google to Pay $2.5 billion if Regulators Thwart Motorola Mobility Acquisition : Google included in U.S. SEC-filed documents Thursday its willingness to pay a hefty $2.5 billion breakup fee if the Motorola Mobility acquisition will not push through.

As indicated in the filing, Google will pay Motorola Mobility an amount of $2.5 billion – a hefty 20 percent bargain of the $12.5 billion agreement – if the bid stumbles under pressure from antitrust agencies.

In comparison, AT&T swore under oath to pay T-Mobile $3 billion, or 7 percent of the $39 billion deal, if government regulators thwart the proposal.

On Motorola Mobility’s side of the bargain, the Securities and Exchange Commission filing disclosed a $375 million termination fee that the company will pay Google if it snubs the deal for better offers from rival companies.

While antitrust suits from rivals are invariably escalating, Google is in good faith the agreement will receive approval from regulators, as Motorola Mobility is not a direct competitor to its core business of online search and advertising.

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