During the last week, Google’s (NASDAQ:GOOG) Chairman Eric Schmidt said that the company will keep the Android software free for mobile-phone makers even after completing the planned acquisition of Motorola Mobility (NYSE:MMI), and that it will not give any preferential treatment to Motorola. [1] This should come as a big relief to Samsung, which was concerned that this acquisition would bring about a change in the dynamics of the smartphone industry. As a reaction to Google’s planned acquisition of Motorola Mobility in August this year, Samsung’s Chairman asked the firm’s top management to strengthen its software capabilities as it also found itself embroiled in an intensifying patent battle with Apple (NASDAQ:AAPL) (see Samsung Moves to Shore Up Bada After Google-Motorola Deal).
See our complete analysis for Motorola Mobility stock here
In other news, Motorola recently rolled out its Droid Razr that will be available through Verizon (NYSE:VZ) and Amazon (NASDAQ:AMZN). Motorola claims that Droid Razr is the world’s thinnest 4G LTE smartphone. This smartphone has some attractive features such as 4.3 inch AMOLED screen, a 1.2 GHz dual-core processor, Kevlar elements in the casing, 1 GB of DRAM, an 8-megapixel camera that takes 1080p HD video, and 32 GB of storage split between built-in chips and a microSD card. [2]
Google is in the process of acquiring Motorola Mobility for a valuation of $12.5 billion, which is a whopping premium of 60%. Our pre-deal price estimate of $21 for Motorola Mobility stock is about 45% below market price.
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Notes:- Google chairman says will not favor Motorola, Bloomberg, November 8th, 2011 [↩]
- Motorola Mobility press release, October 18th, 2011 [↩]
