Fresh off their attempt to screw up AT&T's merger with T-Mobile, the DOJ is now looking into the Google-MMI merger.
I hope whatever group tries to buy IDCC keeps their profile low enough to keep those legalistic fools from screwing up our bid, assuming we get one (yes, Lind, I know you think we won't get one)!
Before I go...
DOJ Puts Google/Motorola On Hold With Request For More Info
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Google (NSDQ: GOOG) will renew some old acquaintances at the U.S. Department of Justice before its Motorola (NYSE: MMI) deal is allowed to pass. The company announced Wednesday that the government has asked for “more information” about certain aspects of the $12.5 million deal, which would bring one of the leading Android smartphone vendors under Google’s wing.
This isn’t too surprising. Google has been under close antitrust scrutiny for years now, especially when it comes to its various acquisitions. AdMob and ITA Software were just two recent deals that met with government scrutiny, and Congress recently hauled Google Chairman Eric Schmidt before a committee hearing on Google’s standards and practices.
But it’s still an obstacle. “Today we received what is called a ‘second request,’ which means that the DOJ is asking for more information so that they can continue to review the deal.” Google said in a blog post. “While this means we won’t be closing right away, we’re confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes.”
The Motorola deal, of course, involves a number of interesting angles. Chief among them is the patent debacle that Android partners have found themselves in during 2011, which only got worse Wednesday with the announcement that Samsung has agreed to license patents from Microsoft (NSDQ: MSFT) related to mobile technology. But now that Android is the leading smartphone operating system in the U.S., the government could also be worried that Google’s embrace of Motorola might limit competition in the smartphone market.
No matter what, the move will delay the closing of the deal by several months. And that could be a problem for both Google and Motorola: Google needs Motorola’s patents, and Motorola faces a challenging environment that only increased in complexity with the launch of the Kindle Fire.
Great article, but the wires often get things wrong:
"Google (NSDQ: GOOG) will renew some old acquaintances at the U.S. Department of Justice before its Motorola (NYSE: MMI) deal is allowed to pass. The company announced Wednesday that the government has asked for “more information” about certain aspects of the $12.5 million deal,"
Ummm... that's Billion.
Maybe the justice department ought to be spending some time on why they ok'd the sale of guns to Mexican cartels or how that pesky Solyndra loan got pushed through the first week of this administration after being labeled as a "no go" by Bush? Oh heck, what's $500M between friends, right?
Yup...that's our business-oriented, job-creating, economics challenged, administration. You know the old saying (crude though it is...) He could screw up a (fill in the blank)!
I don't know which is worse. Is he so incompetent, he doesn't understand the ramifications of challenging every merger on the horizon, or if he is doing it intentionally.