FutureFive NZ - What’s happening with Google’s Motorola Mobility deal?

Warning: This story was published more than a year ago.

What’s happening with Google’s Motorola Mobility deal?

The US$12.5 billion purchase of mobile device maker Motorola Mobility by search giant Google could be finalised any day now, although the Chicago-based company has issued a statement reminding stockholders it’s not a done deal yet.

The warning was included in a preliminary financial statement predicting ‘modest profitability’.

"[Motorola Mobility] continues to work closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible,” the statement reads.

"The company notes that the transaction remains subject to various closing conditions, and currently expects the transaction to close in early 2012 once all conditions have been satisfied. The company reminds stockholders that it is possible that the failure to timely meet such conditions or other factors outside the company’s control could delay or prevent completion of the transaction altogether.”

The company’s full results won’t be shared until January 26, but the statement says approximately 10.5 million mobile devices were shipped, of which around 5.3 million were smartphones. This compares with 11.3 million devices, including 4.9 million smartphones, in the same period of 2010.

Revenue is forecast to reach US$3.4 billion, slightly below analysts’ predictions. 

The completion of the Google deal could spark a huge change in the mobile device industry, depending on how it affects the search giant’s relationship with rivals such as Samsung and HTC, who use Google’s Android operating system on their devices. 

Motorola Mobility stockholders voted to approve the deal on November 7. 

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