Motorola Mobility Sued by Shareholder to Stop Sale to Google

This is a discussion on Motorola Mobility Sued by Shareholder to Stop Sale to Google within the Android News forums, part of the Android.net category; Here is a story that could either be a tale of extreme corporate greed, or one of an individual investor protecting his investment. We will ...

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Thread: Motorola Mobility Sued by Shareholder to Stop Sale to Google

  1. #1
    Editor in Chief dgstorm's Avatar
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    Motorola Mobility Sued by Shareholder to Stop Sale to Google


    Here is a story that could either be a tale of extreme corporate greed, or one of an individual investor protecting his investment. We will give you the facts and let you decide which it is. Recently, Google announced that it would be purchasing Motorola Mobility for the price of $12.5 Billion dollars. That figure comes to $40 dollars a share to current Motorola Mobility shareholders, which is an instant profit of 63% on their investment. However, this amount didn't go over very well with one investor, named John W. Keating.

    Mr. Keating, filed a complaint in a courthouse in Chicago against Motorola Mobility Holdings Inc. and its chief executive officer, Sanjay Jha, along with Google and nine members of Motorola Mobility’s board, claiming that they failed to get a better price. “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” Keating claims. He further added, “Motorola has experienced an economic resurgence since separating into two separate companies. The Android smartphone technology it relies on continues to gain ground on Apple’s iPhone.” He indicated that shareholders will no longer be able to share in the future success of the company. Here's a quote from the Bloomberg article with the final details,
    Keating accused the individual board members of breaching their duty to investors and claims Motorola Mobility and Google aided and abetted that breach.

    He is seeking class-action, or group, status for the case, an order declaring the agreement is unenforceable and an order barring the completion of the sale.

    Jennifer Erickson, a Motorola Mobility spokeswoman, said the company hadn’t yet had an opportunity to review the complaint and that she and couldn’t comment on it. Google declined to comment, Katelin Todhunter-Gerberg, a company spokeswoman, said in an e-mail.
    What do you guys think? Does he have a legitimate concern, or should he have just been satisfied to "take the money and run?"

    Source: Bloomberg/Businessweek.com
    Last edited by dgstorm; 08-18-2011 at 11:31 AM.

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    Super Moderator/RS SLAG IT!'s Avatar
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    I think he has a valid point. It would be beneficial to take the money and run. My question is this, is he REALLY concerned about the purchase and how bad it will be for shareholders or is he wanting a bigger slice of the pie? (more money before he becomes a sellout like everyone else) :D

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    Super Moderator/RS furbearingmammal's Avatar
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    Greedy bugger. "They're offering a lot more money than it's worth, but I think I deserve more!"

    I hope this guy gets laughed out of court. Were I the judge I would make him pay court costs for wasting my time.
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    Android Addict alphawave7's Avatar
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    Considering Google *could* have purchased them FAR cheaper before the Droid came out, and think they paid a premium today, I'd say he's dang lucky to get what he got!
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    He probably only has 5 shares and hopes he will win or atleast get a settlement out of court for a couple million.

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