When we first heard the news that Google acquired Motorola I’m sure many thought about the possible legal issues they may face but I doubt many were expecting something of this sort. Apparently an investor and shareholder named John W. Keating has filed a lawsuit against both parties as he feels Google severely underpaid and that effects him as a shareholder.
Here is what Keating had to say:
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.”
We can clearly see the benefits of the acquisition and it will offer Google and OEM’s signification protection from further lawsuits so you can sort of see where Keating is coming from, even though initial reports suggested shareholders had agreed to the deal. Not to mention Google paid 63% OVER the share value at the time of closing.
From what I’m seeing the complaint has been filed on behalf of all Motorola Mobility shareholders, and Keating will be seeking class action status for the lawsuit in an attempt to get the deal completely stopped or denied. So far no comments have been made from either party but I’m sure we will be hearing more on this over the next few days. I guess I sort of expected someone to come forward and disagree with the deal, but not so fast.