Google’s acquisition of Motorola Mobility is getting hung up in regulatory review over in China, and Motorola Mobility investors are getting nervous that Google might abandon its $12 billion bid, a market source tells us.
These fears have knocked Motorola Mobility shares “out of bed” this past week.
A source with knowledge of Google’s views on its regulatory hurdles in China tells us the company is not about to abandon its bid.
This source explained:
The Chinese are really interested in respect. This review process Google is going through is as much about getting respect as a regulator around the world as anything else.
What’s looming large are Google’s previous dealings with them: what was seen as losing face on the censorship stuff.
If I were a betting man I think they would approve it because they don’t want to be an outlier.
As far as cold feet, there’s just no way on that. Motorola is still viewed as solution to the patents issue, so I can’t imagine cold feet. It’s not a question of whether, it’s a question of when.
Here’s the ugly MMI chart: