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Archives > Transaction Case Study 55
SOKOLOFF & COMPANY CASE STUDY: GOOGLE BUYS MOTOROLA MOBILITY
BUYER: Google (NASDAQ: GOOG)
SELLER’S FINANCIAL INFORMATION AND M&A MULTIPLES
TRANSACTION DRIVERS: The acquisition of Motorola Mobility, a dedicated Android partner, is expected to enable Google to enhance the Android ecosystem and improve its competitive position in mobile computing. MMI’s 17,000 patents will also help Google defend against patent lawsuits levied by competitors like Apple and Microsoft.
SOKOLOFF COMMENTARY: The best thing Google could do with MMI is to keep it at arm’s length and attempt minimal integration. There is no cultural fit whatsoever between the two firms. Founded in 1928, Motorola, like its peers at the former Bell companies, is encrusted with a curious mix of engineering genius and an obstinate unwillingness to embrace new, especially outside, ideas. Place and position are the hallmarks of long term MOTO employees and new, fresh blood usually finds itself thwarted in attempts to capture corporate mindshare and appreciation.
Google is the polar opposite in almost every way. There is brilliance at both companies however and Larry Page and his lieutenants would do well by approaching cooperative efforts diplomatically, similar to two disparate nations working out how to ally in a common war effort.
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