Motorola is now a step closer to being part of Google. In a special meeting of the stockholders, the deal was approved by a majority vote of more than 99%.
Sanjay Jha, chairman and CEO of Motorola Mobility, said, We are pleased and gratified by the strong support we have received from our stockholders, with more than 99 percent of the voting shares voting in support of the transaction. We look forward to working with Google to realize the significant value this combination will bring to our stockholders and all the new opportunities it will provide our dedicated employees, customers, and partners.
I never thought that the deal wouldn’t be approved by Motorola shareholders, and I suspect, no one else did either. It was an excellent deal, giving them a 63% premium to the stock price on August 15, when the deal was announced.
Motorola had partially revived itself by aligning its smartphone efforts with Android, but its stock price was hardly going anywhere. Samsung and HTC were eating its lunch at the Android party, and its stock price was on a downward spiral for a couple of months before the deal was announced.
On the other hand, I’m not sure if the deal was any good for Google. While I initially assumed that the deal would finally boost Google’s patent arsenal, allowing it to defend its Android device partners against Microsoft and Apple, that didn’t really happen.
Microsoft still continues to bully Android device manufacturers, extracting patent licensing fees from them, while Google just sits back and sometimes whines in public.
Not only that, Google’s newly minted relationship with Motorola may have driven a wedge between it and other Android manufacturers like Samsung and HTC, which seem to be hedging their Android bets with Windows Phone.
We are yet to see how this acquisition will play out, but I don’t expect a very high return on investment for Google.