Motorola Mobility Gets Lift from Patent Win Against Apple & Announces Android-based TV Controller
Motorola Mobility (NYSE:MMI) has won a patent infringement case against Apple (NASDAQ:AAPL) for selling some devices in Germany. [1] However, according to the report, the ruling should not impact Apple’s sales in Germany as the company sells all its product there through a local subsidiary, which was not covered by the injunction. Google (NASDAQ:GOOG) is in the process of acquiring MMI for a valuation of $12.5 billion, which is a whopping premium of 60%. Until this acquisition is completed, Motorola Mobility will continue to function as an independent company.
See our complete analysis for Motorola Mobility stock here
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In other news, Motorola Mobility could possibly be working on a tablet computer that also doubles as a Android-based TV controller named “Corvair”. [2] Although the report does not give the complete details about the device, the device could be a big shot in the arm for the TV efforts of Google through its acquisition of Motorola Mobility.
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Although the acquisition was done with a point of view of getting hold of mobile patents to ward off lawsuits from competitors, it will also help Google get entry into set-top box market and become part of the cable industry’s distribution chain. The device could possibly be a help to Google’s efforts to enter the living room. Set-top box or the digital TV boxes accounts for around 12% of our $21 price estimate for Motorola Mobility stock.
Our pre-deal price estimate of $21 for Motorola Mobility stock is about 45% below market price.
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Notes:- Motorola wins preliminary ban vs Apple in Germany, Reuters, November 7th, 2011 [↩]
- Exclusive: Motorola Corvair Android-based TV controller leaks out, The Verge, November 5th, 2011 [↩]