back to article Moto beat Google up by a third in Googorola haggling

Google was so eager to land Motorola Mobility, it raised its offer by 33 per cent over two weeks of negotiations, according to a regulatory filing. The Chocolate Factory first offered $30 per share to bag the hardware firm's patents, but Motorola, on the advice of their financial guys, were having none of it - and suggested …

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still a good deal.

The 4-5x price hike (over expectations) for the Nortel patents still makes this premium seem like a bargain ;)

Also not long since someone pointed out G get around $3bil of cash and MASSIVE tax write off with the deal, things they wouldn't have just from buying a shareholding. Softens that 60% apparent premium rather a lot.

[WTF: balanced Google reporting on the reg. Think I need to go lie down]

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kinda

The cash and the tax write-offs do reduce the cost of the purchase, but they actually increase the percentage premium that Google is paying for the business.

ie. Google is paying a 9BN for an enterprise value of 4.5BN, and 3BN for 3BN cash, so the premium on the enterprise itself is 100%.

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Anonymous Coward

re: still a good deal

"The 4-5x price hike (over expectations) for the Nortel patents" is based on a pre-auction valuation by... Google. Didn't stop it making a bid roughly three times that valuation though.

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Anonymous Coward

Chocolateers...

Chocolatards, surely?

Mais non, c'est "Chocolatiers" naturellement. etc etc

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