A regulatory filing with the SEC has revealed that Motorola Mobility CEO Sanjay Jha made $47 million dollars last year. That’s quite a lot considering the company is about to be purchased by Google, they haven’t had a super hit since the origina Droid and Jha is believed to be out after the Google Merger (which actually makes him more money).
Jha’s pay quadrupled from 2010 to 2011. According to Motorola it was his work splitting Motorola into two companies that warranted a $34 million dollar raise. He was most likely instrumental in the Google deal as well.
It was reported back in February that when the merger closes Jha would be out and Google Executive Dennis Woodside would assume command of Motorola Mobility under Google. What does that mean for Jha? Well we reported back in August that Jha has a pretty nice golden parachute. When he joined Motorola from Qualcomm he received 3.8 million shares of Motorola stock. He also received 2.9 million options. Jha’s 2.9 million options are valued somewhere around $62 million dollars. They vest when he’s been with the company 3 years.
While that’s great for Jha, what’s even greater is that his contract states if he leaves the company as a result of an ownership change, ie Google buying Motorola, those 2.9 million shares vest immediately.
At one point in time it was believed that getting European Union approval of the proposed Google/Motorola merger would be one of the hardest parts of completing the whole deal. It looks like that wasn’t the case as Google announced this morning that European regulators have approved Google’s purchase of Motorola.
This comes fresh on the heels of news that Google has started a beta test of a “Next Generation Portable Communications Device” with their own employees throughout the US.
This also means that the only thing left to tackle for the $12.5 billion dollar deal, is US regulatory approval. The Google/Motorola merger, sometimes being referred to as “Googarola” has a much better chance of getting approved than the failed AT&T/T-Mobile deal from last year.
The Wall Street Journal reported early Thursday morning that sources close to the Google/Motorola merger and the United States Department Of Justice, have confirmed that the Google/Motorola merger is slated for approval next week.
Of course the merger still has a little time to be met with opposition from antitrust enforcers in the United States and abroad, however at this juncture it seems that won’t happen.
As we all know to well those same antitrust enforcers were strongly opposed to a deal proposed in March of last year for AT&T to buy T-Mobile.
It’s no doubt that most of the world is familiar with this on-going legal battle with Apple over patents. Apple alleges that Samsung stole their technology while Samsung alleges that Apple stole their wireless technology. While we personally don’t think that Apple or Samsung stole anything, they most definitely borrowed from each other when their relationship was a little healthier.
You see, if you didn’t know it Samsung has been manufacturing processor parts and displays for Apple products since Apple got into the mobile business. It’s not like Apple didn’t know at the time that Samsung was in the mobile business. After all Samsung started making mobile phones in 1986. By the time they started putting out iPhones in 2007 Samsung has already had the first Behold and the first Instinct in production. Samsung had also dabbled in more than just messaging phones with the Samsung Black Jack. So Apple knew that they were going into business with a competitor.
Bloomberg is reporting that South Korea is interested in developing an Operating System that would be able to compete against Android. In an apparent response to the pending acquisition by Google of Motorola Mobility, South Korea has approached Samsung and LG to jointly create an open-source operating system that would be used to protect these companies from outside (international) companies.
Kim Jae-hong, deputy minister in the Ministry of Knowledge Economy, appears to have approached Samsung prior to the announced purchase of Motorola, and met strong defiance to the proposal. Asia Pulse explains it:
Kim said Samsung had been very negative about joint development of an open OS, but its stance changed greatly* after the Google-Motorola merger. *(emphasis mine)
Once the deal was announced Samsung appears to at least be considering the option. With the threat of Google having their own hardware company, Kim Jae-hong states, “Because Google is an open-source system, it cannot just switch over to a closed-source system overnight.” In other words, the official feeling of South Korea’s Ministry of Knowledge Economy, is that Google will follow in the footsteps of Apple – wrestling from our cold dead hands the source code and leaving us with nothing but crushed dreams.
Kim did at least agree that in the short term the benefits of Motorola’s IP holdings would help the members of the Open Handset Alliance (OHA). He was reported to have said he would like to see the OS ready within three years time and that South Korea would be launching the foundation for this program before years end.
Two days ago when Google announced it had entered into a definitive agreement to purchase Motorola Mobility for $12.5 billion dollars, the fine people in Google’s PR department had procured quotes from Google’s top OEM partners aside from Motorola. All of the statements from HTC, Samsung, LG and Sony all echoed the same theme which was that they were glad Google was defending the Android platform. A reference to the 17,000+ patents Google is getting as part of the purchase.
Nokia and Research In Motion both surged following the announcement of Google’s intent to purchase Motorola Mobility. Why? It is simple, Microsoft. The feeling around Wall Street seemed to be – they have to do something. While Nokia seems the obvious choice to (most) people, Research In Motion was mentioned quite a few times. Nokia shares shot up 17.35% with an increase of $.93 up to a mind-boggling $6.29, RIM jumped 10.38% gaining $2.55 reaching $27.11. The idea of Microsoft purchasing either of these companies in response to the Motorola deal seems to have very little rational thought behind it.
Looking at each of the companies, is it possible to find a logical reason for Microsoft to purchase either of them? Are there any glaring reasons why they should not?
Nokia: Microsoft and Nokia just recently entered into an agreement for Nokia to place Windows Phone 7 on their hardware. With that deal Microsoft managed to convince Nokia to drop its Symbian operating system and it’s years of development. Instead of purchasing the company outright Microsoft was able to gain a hardware company with almost none of the headaches that actually come with owning said business. With the exception of actually owning the patents that Nokia holds – Microsoft has Cross-Licensing deals with Nokia thereby at least offering some protection from patent claims. Following the Motorola announcement today, JpMorgan Chase & Co. analysts placed the intellectual property value at as much as 5.4 billion euros ($7.7 billion). Nokia’s market cap is between $14 and $23 billion dollars (the difference is based on the 63% premium Google agreed upon with Motorola).
Earlier in the day the good folks at the Silicon Alley Insider brought up some great points about Google and their purchase of Double Click. Until now, that Double Click deal was the biggest deal that Google has done in regards to absorbing staff of an acquired company.
As we reported (probably multiple times) earlier in the day, Google is set to absorb a company with 19,000 employees, a company that’s been around since the early 1900s. Double Click on the other hands was founded in 1996 and just 12 years later, after a previous change of hands, Google purchased it in 2008. At that time Double Click had technology Google wanted as part of it’s search products and the acquisition included 1600 employees.
Over the last 10 years, with five different cable companies I have had a cable box, and until only recently the only option has been Motorola boxes. Up to this point it could easily be argued that Google TV has been lackluster, at best. We have seen both Logitech and Sony drop prices on their current offerings in recent weeks.
With the purchase of Motorola, Google has an opportunity to get Google TV into millions of homes. Instead of an additional purchase of YET ANOTHER device it is possible that they could easily piggyback on the existing relationships Motorola already has.
I think the three most important aspects would be:
Here’s the side of the story Android enthusiasts didn’t want to hear. While Motorola stock has gone up 13.75% at the time of this writing, Google stock has gone down 12.23%.
Wall Street is reacting to the announcement Google and Motorola made this morning that Google is acquiring Motorola for $12.5 billion dollars. While on the surface Android and Google enthusiasts alike are praising the move for innovation and defense of the Android platform, Wall Street analysts aren’t feeling the same way.
Once the big news broke this morning that Google was acquiring Motorola, the next thought for most was what about Samsung, HTC, LG and even Sony. Samsung, HTC and LG have been huge ecosystem partners of Android and without their help there’s no way Android would be activating 550,000 units per day. However, it appears that Google has gotten everyone on board.
In a group of quotes that were most definitely scripted by a PR firm, all of the other major OEM’s producing devices utilizing the Android ecosystem, came out in support of Google’s acquisition of Motorola
A lot of Android enthusiasts have always openly talked about what it would be like if Google bought T-Mobile or another carrier, but it’s been a year or so since people pondered what it would be like for them to buy an OEM. Well today that has happened.
Google and Motorola have sent out a combined press release today announcing that Google has entered into a definitive agreement under which Google will acquire Motorola Mobility for $40 per share in cash which is about $12.5 billion dollars. The transaction was unanimously approved by both companies Board of Directors.
According to Google this will supercharge the Android ecosystem and enhance competition in mobile computing. Google partnered with Motorola for the launch of the Motorola Droid which brought Android to Verizon Wireless the largest carrier in the United States. The Motorola Droid sold very well and gave Android a big boost from Big Red. Google also partnered with Motorola for the release of the first Android Honeycomb device, the Motorola Xoom. Unfortunately the Xoom didn’t fare as well.