Apple recently asked a court to put two pending lawsuits with Motorola Mobility on hold, FOSSPatents reported on Monday. Apple believes that Google’s planned $12.5 billion acquisition of Motorola Mobility has resulted in a forfeiture of Motorola’s patent litigation rights. “Apple should not have to face the threat of an injunction based on the claims of a party that now has no standing to bring those claims,” the company argued. Apple currently has 21 patents-in-suit against Motorola Mobility, FOSSPatents said, and the iPhone maker is worried the results of a potential court win against Motorola will be moot once Google finishes its acquisition. “Were Apple to prevail in this case it risks an attack on its victory on appeal by a third party, whether Google or another Android smartphone manufacturer, contending that the judgement should be overturned due to a lack of prudential standing,” Apple said. Google CEO Larry Page hopes the acquisition of Motorola Mobility will bolster Google’s patent portfolio and help it defend Android partners against Apple and Microsoft. More →
A Motorola Mobility shareholder has initiated a class-action lawsuit against the company after CEO Sanjay Jha announced intentions to sell the firm to Google for $12.5 billion. The shareholder hopes to block the sale and argues that Motorola Mobility failed to shop around for the best price. “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” investor John W. Keating said in the lawsuit. “Motorola has experienced an economic resurgence since separating into two separate companies,” he added. “The Android smartphone technology it relies on continues to gain ground on Apple’s iPhone.” If the deal is approved, Motorola Mobility will pay its investors $40 per share in cash. More →
Google has agreed to pay Motorola Mobility $2.5 billion if its planned acquisition of the cell phone vendor fails to close, Bloomberg claims. The report cites an anonymous source as having revealed the figure, which Bloomberg says is more than six times the typical breakup fee for such deals. Google announced on Monday that it plans to acquire Android smartphone and tablet vendor Motorola Mobility for $12.5 billion. While the proposed deal would give Google complete control over future Android device experiences, it would also add approximately 25,000 patents to the tech giant’s portfolio as it prepares to do battle with the likes of Apple and Microsoft. These patents are seemingly so important to Google that it is willing to part with a massive sum should its acquisition fail to get necessary approval. “A high reverse breakup fee shows the buyer’s confidence of getting the deal done,” Donna Hitscherich, a senior lecturer in finance at Columbia Business School, told Bloomberg. “People don’t do deals to get the breakup fee, they do them to get the deals done.” More →
In a post penned by Larry Page on Google’s company blog, the CEO explains why Google decided to shell out $12.5 billion to purchase smartphone vendor Motorola Mobility. While Page had plenty to say about Motorola’s extensive history and its leading role in Android’s explosive growth, he also points to what many believe to be one of the leading factors behind the deal: patents. “We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android,” the CEO wrote on Google’s blog. “The U.S. Department of Justice had to intervene in the results of one recent patent auction to ‘protect competition and innovation in the open source software community’ and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.” Read on for more. More →
Google and Motorola Mobility have announced an agreement whereby Google will acquire Motorola for $12.5 billion. The acquisition price equates to $40 per share of Motorola stock, or a premium of 63% over Friday’s closing price. The move is considered in part to be an effort that will better-align Google to compete with Apple’s iPhone, which owned two-thirds of profits among the world’s top-8 smartphone vendors in the second quarter. A Google-owned hardware arm give the company complete control over device hardware, software and services, resulting in an end-to-end user experience that is completely under Google’s command. Perhaps just as important in this day and age, the deal will also give Google control of Motorola’s extensive patent portfolio. “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies,” Google CEO Larry Page said in a statement. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.” It is unclear how this might affect Google’s relationship with other Android partners. The deal is subject to regulatory approval, of course, and it is expected to close in late 2011 or early 2012. The full press release follows below. More →
Motorola Mobility on Thursday released its second quarter 2011 earnings and despite recent analyst downgrades, the company recorded a strong quarter. Motorola posted net revenues of $3.3 billion, up 28% from the same time period last year. In addition, mobile device revenues were $2.4 billion, up 41% from the second quarter of 2010. Motorola Mobility shipped a total of 11 million devices, including 4.4 million smartphones and 440,000 units of its XOOM Android tablet. That’s a large improvement over the 8.3 million mobile devices the firm shipped during the year-ago quarter. CEO Sanjay Jha also told CNET in a recent interview that the Verizon Wireless DROID BIONIC will finally launch in September. In addition, Motorola Mobility will introduce two new tablets and two 4G LTE smartphones. One of the tablets will have a 10-inch screen while the other will have a smaller display. “You’ll like the look of the tablet,” Jha said. “The consumer and carrier feedback has been positive. We want to compete. We think we have competitive products in the marketplace, and we’ve got good design wins in the U.S.” Read on for the full press release. More →
Facing stiff competition from Samsung, LG, and Apple, Motorola Mobility has seen a slump in its share price and market share following a recent downgrade from analyst firm BMO. According to Dow Jones News Wires, Motorola Mobility’s share of the Android market took off like a rocket when it introduced the highly sought-after Motorola DROID on Verizon in 2009. However, its Android share fell from 33% last year to just 14% in the first quarter as other manufacturers began pumping out competing Android devices, some at lower price points. Reportedly, BMO has cut Motorola Mobility’s earnings per share target for the year and has dropped its price target from $26 to $19. Motorola Mobility last closed at $22, down from its 52-week high of $36.54.
Time flies. Motorola introduced its MOTOBLUR user interface and software service with the debut of the Motorola CLIQ back in 2009, but now it appears that moniker’s days are coming to an end. Just yesterday the company unveiled two new Android smartphones for Sprint and Virgin Mobile: the Photon 4G and the Motorola Triumph. The Motorola Photon 4G clearly sports Motorola’s custom user interface, but there was absolutely no mention of the name. We’ve confirmed that Motorola will phase out referring to its UI as MOTOBLUR. Perhaps the move is related to Motorola’s purchase of Three Laws Mobile (3LM) earlier this year, which suggests that an entirely new UI is in the works. Either way, it’s clear that customers didn’t care for the original service and UI, but the bits and pieces that Motorola continues to use seems to be working well for the company. More →
We’ve just received an invite for a joint press event being held by Sprint and Motorola Mobility on June 9th. Sprint’s CEO, Dan Hesse, will speak during the press conference, as will Motorola Mobility’s CEO Sanjay Jha. We assume we’ll hear about new product launches from the two, as the invite confirms there will be “hands-on demonstrations of Sprint and Motorola’s latest collaborations.” We’ll be reporting live from the event.
MKM Partners analyst Terry Kuittinen on Friday issued a note to investors reiterating a Buy rating on Motorola Mobility stock, setting the firm’s price target at $35. Kuittinen states that Motorola will likely see success with British carrier Orange, which launched Motorola’s new ATRIX smartphone ahead of upcoming competitors like the Samsung Galaxy S II and the LG Optimus 2X. The analyst also noted that the ATRIX is getting strong promotional backing elsewhere from carriers like TIM. In the U.S., Kuittinen thinks the delayed launch of Motorola’s upcoming DROID BIONIC won’t have much of an impact on the company’s sales, considering the higher pricing of 4G LTE phones like the LG Revolution, HTC ThunderBolt and Samsung DROID Charge. Motorola’s upcoming $200 DROID X2 will be a winner at Verizon Wireless, the analyst believes, and it could help Motorola sell 500,000 phones through Verizon this quarter.
Global Equities analyst Trip Chowdry on Monday became the latest analyst to take a shot at Motorola’s XOOM tablet, though Chowdry’s figures appear a bit suspect. The analyst claims Motorola Mobility manufactured between 500,000 and 800,000 XOOM tablets thus far, and he estimates that the company has only sold between 5% and 15% of those tablets. Chowdry thinks that Motorola may have sold as few as 25,000 units or as many as 120,000 XOOM tablets to date. Yes, a range that large is absurd — some might even call it an egregious disservice to Global Equities’ clients — but if Chowdry’s numbers are at all accurate, this could spell trouble for Motorola. While we argued that recent XOOM sales estimates didn’t render the XOOM a flop, if Motorola did in fact build nearly a million tablets and sell less than 100,000 units, “flop” might become an accurate descriptor. Of course if the XOOM was in fact selling at such a slow rate, Motorola would have likely cut its orders and slowed production, again leading us again to wonder if Chowdry spilled coffee on his notes before typing up these recent estimates. We should know more on Thursday when Motorola Mobility reports its earnings for the last quarter, though we’re not sure the company will disclose a breakdown of device sales. More →
The Motorola XOOM is a flop, several blogs proclaimed today on news that Deutsche Bank analysts estimate that Motorola Mobility has only sold 100,000 XOOM tablets so far. Only? In an unproven market that is barely a year old, we’re looking at a brand new device that is selling at a rate of 75,000 units per month. We’re looking at a brand new device with a brand new operating system that is the first version of Android to address the tablet market. We’re looking at a brand new device that has likely pulled in more that $70 million in hardware sales. We’re looking at a brand new device that will also be responsible for millions of dollars each month in revenue for carriers and developers. But it’s a flop? More →
Motorola Mobility has sold 100,000 Motorola XOOM units through the tablet’s first two months of availability, Deutsche Bank analysts claim. The firm arrived at the 100,000 figure by using the Android developer site to see how many people are currently using the Honeycomb OS. Dow Jones’ Shara Tibken notes in her wire report that Apple’s original iPad sold 300,000 units on its first day of availability alone, rendering sales of the XOOM less than impressive. Comparing XOOM sales to iPad sales makes for good chatter of course, but a sell rate of 50,000 units per month is certainly respectable for the Honeycomb tablet. Deutsche Bank states that the current estimated sales pace is in line with its estimates of 50,000 units in the first quarter and 150,000 in the second quarter of 2011. Motorola has not revealed official sales figures for the XOOM.