Market experts and tech critics have cited the merger of Motorola Mobility and Google Inc as one of the major gambles so far by the search giant; the deal is already being contested by one of the shareholders of the mobile phone maker.
According to Reuters, John Keating, an investor and shareholder in Illinois-based Motorola Mobility Inc, has protested against the merger and filed a lawsuit demanding the acquisition by Google be stopped.
Keating has said that Motorola Mobility’s acquisition by Google is giving large profits to the board members of the mobile maker while shareholders will not fully benefit from any of the profits earned after the company's predicted rebound.
The $12.5 million deal which will add a hardware development specialised team to Google Inc, is being contested by Keating in a Cook County, Illinois Circuit Court, the lawsuit filed against Motorola Mobility accuses the board members of neglecting their responsibilities towards shareholders. Keating wants to see a class action suit against the board to put a stop to the merger.
“Motorola was just beginning to bear fruit from the restructuring this year that split the company in two. Because they will be cashed out by the board's decision to sell, shareholders are missing out,” the court filing read.