Posted by & filed under Company Analysis, Financial analysis.

Description: There’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 company’s competitive position was far from certain, especially given the fickle nature of the market for smartphones.

Source: Marketwatch.com

Date: 08/18/2011

Link: http://www.marketwatch.com/story/google-rescues-a-potential-falling-star-2011-08-18?siteid=nwtwk

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?

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