Documents filed with the US Securities and Exchange Commission reveal how Google ended up paying $12.5 billion for Motorola Mobility.
According to a filing made by Motorola with the SEC, Google’s mobile head Andy Rubin had first approached Motorola’s CEO Sanjay Jha for a possible acquisition. After that Google CEO Larry Page and Google’s business manager Nikesh Ahora also joined the talks.
What followed were a month long confidential negotiations after which Google decided to offer $30 per share for Motorola, which promptly rejected the bid. Google then offered $37 per share for the company but that too was rejected.
Motorola then asked Google to pay around $43 per share and after a lot of haggling, both the companies settled on $40 per share.
Google, desperate to get its hands on Motorola’s patent holdings, ended up paying $3 billion more than it had originally intended, making it the single largest acquisition in the search engine giant’s history.
“The parties also discussed the impact of the Nortel auction, intellectual property litigation and the potential impact of such litigation on the Android ecosystem, Motorola Mobility’s patent portfolio and potential strategic options relating to the Motorola Mobility patent portfolio and Motorola Mobility, including the potential sale of Motorola Mobility to Google,” the filing read.
Google has made 136 acquisitions since it went public in 2004, which comes to a total of $9.1 billion.