The latest word on the Google-Motorola Mobility merger

The latest word on the Google-Motorola Mobility merger
Both Motorola Mobility and Google shareholders have voted to allow the purchase of the former by the latter for $12.5 billion. But that doesn't end the approvals necessary to get the deal closed. Besides the shareholders, two countries have signed off the deal, Turkey and Russia. Antitrust clearance, or waiting period expirations, are required for the U.S. Department of Justice, European Commission, Canada, China and Israel. In those countries, the deal can be approved by having the appropriate official sign the proper paperwork, or by letting a certain period of time go by without raising an objection to the merger.

While the waiting period has expired in China and in the U.S., both countries have informed Motorola that they have not completed their respective investigation. Last month, the Chinese Ministry of  Commerce said that it had started Phase 2 of its investigation of the deal. While there hasn't been much media coverage of any objection to Google buying Motorola Mobility like there was with the never completed $39 billion proposed purchase of T-Mobile by AT&T, there have been consumer groups in Europe writing to European Union to try to get the deal stopped while in the U.S., Consumer Watchdog has also written to the EU to ask them to scrap the merger.

Consumer Watchdog has written several letters accusing Google of being in bed with the U.S. Government. They also have made several videos (see below) criticizing Google's Chairman, Eric Schmidt. Part of their letter to the EU reads, "Allowing the Motorola Mobility deal would provide Google with unprecedented dominance in virtually all aspects of the mobile world – manufacturing, operating systems, search and advertising. It would be a virtually unstoppable juggernaut. We urge the Commission to block the proposed $12.5 billion deal." Despite these objections, Motorola Mobility still expects the deal to close early this year, but does say that factors outside of its control can delay or scrap the deal altogether.

The entire letter from the consumer advocacy group to the EU can be read by clicking on this link.

source: AndroidandMe

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17 Comments

1. AhmadAlsayegh

Posts: 326; Member since: Jul 18, 2011

I was expecting a comment from PA on the issue above? are you with or against?

11. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I'd prefer they remain objective and have no real stance. Maybe a few editorials/opinion pieces from their staff but as a limited presence and presenting opposing viewpoints, but no actual hard stance from the site itself.

2. davidvvassallo

Posts: 39; Member since: Jul 02, 2011

Why cant they just buy it. Why do they need approvals from countries?

3. remixfa

Posts: 14605; Member since: Dec 19, 2008

i was wondering the same thing. my only guess is that they have offices/factories in those countries that require approval.

14. TKFox007

Posts: 303; Member since: Nov 02, 2010

I think it's because of Google and Motorola, while being American companies, serve a world wide consumer basis. Unlike the AT&T/T-Mobile deal, both companies only served America so only the only people that needed to approve it was the US Department of Justice, even though T-Mobile is owned by a German company.

4. darac

Posts: 2156; Member since: Oct 17, 2011

I wonder what the author of that " virtually unstoppable Juggernaut " complaint thinks about apple then. or the aspects of Microsoft - Nokia alliance? if this deal doesn't go through, I'm afraid soon there won't be Motorola mobility to begin with! because this despicable apple madness is destroying companies capable of creating some great products. I say, bring on Google Juggernaut!

6. dsDoan

Posts: 235; Member since: Dec 28, 2011

Apple isn't a hardware manufacturer, so you can't compare Apple to Google + Motorola. That aside, I also welcome the purchase.

8. jroc74

Posts: 6023; Member since: Dec 30, 2010

Ok...the iPhone is made up of parts from LG, Samsung and probably others. But they still make the phone overall. Motorola phones are made from other parts too: Amoled screen from Samsung, LCD screen was from LG or Sony? Dont really know. T.I chip, qualcomm chips..but they still make the phone overall. I think darac has a valid point. Apple makes the OS for the iPhone, so what will be the difference when this deal is final? And Apple does other things besides mobile phones, Motorola does too.

10. dsDoan

Posts: 235; Member since: Dec 28, 2011

The difference is that Apple and Google do not touch the hardware. Motorola does. Apple does not own a manufacturer that makes their products (Not literally, anyway).

5. bikingpadres

Posts: 20; Member since: Jan 19, 2012

I agree with you Motorola Mobility might need that extra boost from Google to stay afloat

7. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

Sometimes I wonder about what in the hell these Consumer Watchdog advocate groups are really about. Like what are they doing about other real problems with mobile communications? Like the fact that something smells bad with the whole Lightsquared problem. Not be be cynical but I feel that these groups are basically full of crap and always sell out to the highest bidder. Seems like they are in someone's back pocket. Google in bed with the U.S. Government...what else is new, what company isn't or hasn't been in bed with the U.S. Government? "Allowing the Motorola Mobility deal would provide Google with unprecedented dominance in virtually all aspects of the mobile world – manufacturing, operating systems, search and advertising. It would be a virtually unstoppable juggernaut. " What sort of trash is this? Google's OS is open source and the make no money off the OS...watchdog my ass don't even know what the hell they are even talking about. Hey as long as it is beneficial to the jobs market and allows Motorola to continue to remain viable let it roll. This wouldn't magically make Google a juggernaut in the mobile arena...that's just crap. If Google bought Samsung or partnered with Apple now that is what you would call a juggernaut. This is just a good business investment, with all the giant companies who have much greater presence in different outlets Google all of a sudden is a threat. Perhaps it's because Google is basically the youngest company to rocket to such unprecedented levels of profitability? Envious? Don't think that grown men and women are above such petty emotions, in fact it's why we get into wars and all sorts of disagreements on global scales.

9. nacixem

Posts: 32; Member since: Jan 05, 2011

that sounds awesome - the Google Juggernaut!

12. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

A Googgernaut?!

13. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

That transaction should be denied since the goverment is sticking their nose in companies business....!!!

15. dragonscourgex

Posts: 307; Member since: Jan 16, 2012

I find it funny how deals such as ATT/Tmobile Goolge/Motorola are called anit competitive, but Apple going around the world trying to banned the only OS able to stand toe to toe with them from the market places is not. I personal welcome the deal. I would love to see what Google would be able to do when they can cut out some of the red tape and actually build the phones like they want.

16. bikingpadres

Posts: 20; Member since: Jan 19, 2012

I just don't want Motorola to go off the market so I guess I could lean either way

17. blacksmith

Posts: 1; Member since: Jan 29, 2012

I personally don't see a problem with it. after all, RIM does the same thing. they make their own OS, desktop software, devices and network (BBM, AppWorld, etc). I don't see this as a threat at all.

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