Google has been under pressure because of the increasing patent woes from all around, and this deal will brings a 17,000+ patent portfolio along with some 7,500 patent applications, which are currently pending.
Other Android manufacturers have been positive so far about the deal and they are happy that they will finally a huge IP backing to fight with all the patent lawsuits relating to Android.
Search engine giant is playing $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday. After deal’s announcement, Motorola shares have already reached around$38, at the time of writing this report.
We have seen that there have been constant regulatory problems in all the Google acquisitions in the recent past and keeping in mind that fact Motorola seems to have put a huge reverse termination fee (RTF) of $2.5bn on the deal, reported WSJ. This RTF is way above the market standard, which is 3pc of the deal value.