Description: Thereâ€™s a good chance that Google Inc. overpaid for Motorola Mobility Holdings Inc., given that the premium was 63% in an overall stock market looking for direction. Also, the acquired companyâ€™s competitive position was far from certain, especially given the fickle nature of the market for smartphones.
Questions for discussion:
- Do you believe that Google made a smart move and paid a fair price for Motorola?
- Which criteria should be used to value this sort of acquisition?