WSJ: Google/Motorola deal faces legal hurdles, Motorola has $2.5B “reverse termination fee”
After a shocking announcement this morning from Google regarding a $12.5 billion acquisition of Motorola Mobility, most are already discussing what this means for the future of Android. However, a report from WSJ claims their sources are reporting Motorola has an “unusually large” 20% reverse termination fee in place that would see Google paying $2.5 billion if the deal falls through.
The report claims this might be proof Motorola is worried the acquisition could be the subject of antitrust regulators who are already investigating Google for its ability to abuse its market lead. However, Google execs noted in a conference call with financial analysts this morning that they aren’t worried about the deal being seen as anti-competitive in nature.
Why would the deal fall through? The report points to potential legal hurdles in Washington, similar to those that allegedly stopped a Groupon acquisition from happening. Google is already the subject of an antitrust probe related to their purchase of ITA software, and continues to be in the middle of intense legal battles with rival smartphone makers.
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