Discussion in 'DELETED POSTS' started by EFCC, Aug 19, 2011.
Deal break fee is $375 million --
Reverse break fee represents 20 percent of deal size
NEW YORK, Aug 15 (Reuters) - Google Inc (GOOG.O) would pay Motorola Mobility Holdings Inc (MMI.N) a whopping $2.5 billion if it decided to walk away from its proposed $12.5 billion acquisition of Motorola, a source close to the situation said.
The reverse break-up fee represents 20 percent
of the total size of the deal, announced Monday. On the other side, if Motorola were to decide not
to go through with the deal, it would have to pay Google a $375 million break-up fee, the source
said. That represents 3 percent of the deal
valuation of $12.5 billion.
Google said on Monday it would buy phone
hardware maker Motorola Mobility to bolster
adoption of its Android mobile software and
compete with smartphone rival Apple Inc
In its biggest deal to date, Google said it would pay $40 per share in cash, a 63 percent premium to Motorola Mobility's Friday closing price on the New York Stock Exchange. [ID] Lazard advised Google on the deal, while Motorola used Centerview Partners and Frank Quattrone's
Qatalyst Partners, sources told Reuters. (Reporting by Nadia Damouni, editing by Gerald E.McCormick)