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Google Motorola M & a
2013

Google – Motorola Mobility
Acquisition
This project has been prepared as part of the Investment Banking course at SIBM Bengaluru. It highlights the salient features of the acquisition of Motorola Mobility by Google and its take from an Investment Banking perspective.

Rohit Jhunjhunwala 12020841158 8/18/2013

Table of Contents
Executive Summary................................................................................................................................. 3 Introduction: Motorola Mobility............................................................................................................. 3 Company Overview ............................................................................................................................. 3 Reason to Sell Mobility ....................................................................................................................... 3 Introduction: Google ............................................................................................................................... 4 Company Overview ............................................................................................................................. 4 Google’s End Game ............................................................................................................................. 4 How Motorola fits into It .................................................................................................................... 5 The Deal .................................................................................................................................................. 5 Overview ............................................................................................................................................. 5 Structure ............................................................................................................................................. 6 Valuation


References: Figure 4 MMI Income Statement 10 Figure 5 MMI Cash Flow Figure 6 MMI Balance Sheet 11 Bibliography (1). Retrieved from http://en.wikipedia.org/wiki/Motorola (2). Retrieved from http://news.cnet.com/8301-1035_3-57438986-94/google-officially-closes-$12.5billion-motorola-mobility-deal/ (3). Retrieved from http://www.google.com/intl/en/about/index.html (4). Retrieved from http://ktarunmathur.blogspot.in/2011/10/acquisition-of-motorola-mobility.html (5). Retrieved from http://www.hoovers.com/company-information/cs/revenuefinancial.Motorola_Mobility_Holdings_Inc.b681bc40cbf7536e.html (6). Retrieved from http://quote.morningstar.com/stock-filing/AnnualReport/2011/12/31/t.aspx?t=:MMI&ft=&d=fb9ac5297a3b5b2518b217e762e84210 (7). Retrieved from http://www.zdnet.com/googles-motorola-purchase-was-it-worth-it7000009356/ (8). Retrieved from http://www.theverge.com/2013/4/26/4271432/does-anyone-know-why-googlebought-motorola/in/2795023 (9). Retrieved August 18, 2013, from http://www.google.com/press/motorola/ (10). Retrieved August 19, 2013, from http://blogs.wsj.com/digits/2011/09/14/for-google-themotorola-deal-was-all-about-the-patents-at-first/ (11). Retrieved August 19, 2013, from The Economist: http://www.economist.com/blogs/babbage/2011/08/valuing-patents (12). Retrieved August 19, 2013, from http://www.mbaskool.com/business-articles/finance/853googles-purchase-of-motorola-mobility.html 12
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