Google raised Motorola bid by $3B to get deal done

0
11

SAN FRANCISCO (AP) ? Google wanted to buy Motorola Mobility so badly that it threw it an extra $3 billion to get its takeover offer accepted last month.

That tidbit emerged Tuesday in regulatory documents that include details about the negotiations that culminated in cell phone and tablet maker Motorola Mobility Holdings Inc. agreeing to be sold to Google Inc. for $12.5 billion, or $40 per share.

After several weeks of confidential discussions, Google initially offered $30 per share in an Aug. 1 letter to Motorola’s board. At the time, Motorola’s stock was hovering around $22.

Motorola rejected the first bid and asked for $43.50 per share on the advice of Silicon Valley investment banker Frank Quattrone. Google then suggested a price of $37 per share before finally agreeing to pay $40 per share.