Chapter 486: Acquisition of Motorola

readx;

The advent of the prince mobile phone has also accelerated the death of many brands. Pen ~ Fun ~ Pavilion www.biquge.info... Top Novel,

For example, Motorola, which has been losing money for many years.

Since 2006, the former mobile phone giant has been losing money. In 2008, after Motorola changed the Indian-born Sanjay Jay as CEO, it began to reform drastically, adjusting the direction of product development, changing from the past feature phones to smart phones, betting on the Android system. At the same time, the company's management model was adjusted to reduce expenses.

Since 09, Motorola has developed its own Android smartphone, cooperating with the largest operator in the United States, and cooperating with Telecom in Huaxia, and the sales are also very good.

2010 was originally the year when Motorola pinned its hopes on turning losses into profits, but it didn't expect the prince mobile phone to suddenly come out, and under the attack of Apple 4 and the prince mobile phone, Motorola collapsed.

Another loss this year is a foregone conclusion.

Nokia, the boss of the mobile phone industry, has also been hit hard, with smartphones completely defeated in China and sniped by Apple 4 abroad, although it will not lose money, but its performance will decline significantly.

Motorola and Nokia's stocks have fallen sharply this year.

The production of Prince mobile phones has dropped sharply, but Prince Technology has not stopped the pace of development, but officially proposed to Motorola the intention to acquire Motorola's smartphone business and the 170,000 patents it holds.

Motorola's shareholders have also acquired long-term losses, and under the attack of Apple 4 and Prince mobile phones, Motorola has no hope of turning around its losses.

However, Motorola believes that after they sell the patent, it will be difficult for the rest of the hardware business to operate, so it proposed to let Prince Technology acquire it as a whole.

After a period of negotiations, Prince Technology and Motorola set a purchase price of $10.5 billion.

If Prince Tech breaks the contract, it will need to pay $2.5 billion in compensation. If Motorola breaks the contract, it will have to pay $500 million in compensation.

On November 25, Prince Technology and Motorola announced the results.

Motorola's board of directors has approved the deal, and Wang Zixuan alone has the final say.

The news shocked the tech world as soon as it was announced.

The acquisition of a large number of Motorola's patents will help Prince Technology and other companies to cross-swap licenses, reducing patent fees and litigation.

Although Prince Technology has spent a lot of patent royalties, it has been sued by Apple, Microsoft, Samsung and other companies for patent infringement during this time.

Of course, for a tech company, it can't be considered a successful company without being sued.

Whether it's Microsoft, or Apple. Or Samsung, they will be sued from time to time, and the lawsuits between each other are even more constant.

At the same time, Motorola's smartphone technology is also helpful for the Prince phone.

In the eyes of the Chinese people, this is even more of a remarkable acquisition.

Motorola is also a tall brand in the eyes of many Chinese people, and the acquisition of Motorola by Prince Technology is definitely a matter of national pride.

However, the acquisition of Motorola by Prince Technology is subject to the approval of the U.S. Department of Justice, the European Union and other regulatory authorities.

Although Prince Technology is a newcomer in the industry, it occupies a large market in both the field of instant messaging and mobile phones. And Motorola also has a large market, and the combination of the two is likely to affect the free competition of the market.

The wonderful moments of Microsoft's acquisition of WhatsApp and Facebook's acquisition reached this month are also subject to the approval of various countries, because Microsoft and Facebook are both industry leaders, and the acquisition of WhatsApp and the wonderful moment are likely to form a monopoly.

Of course. Basically, these acquisitions can go through.

Antitrust lawyers and analysts say the U.S. Department of Justice may need to make some concessions for the U.S. Department of Justice to pass the Prince's acquisition of Motorola Mobility.

The U.S. Department of Justice may add additional conditions to ensure that Prince Technology will not use any of Motorola's patents to harm competition in the smartphone market. Prince Technology may be required to license some of its patents to competitors.

"Today, all antitrust agencies are interested in Prince Technology," said Harry Foster, a professor at New York University School of Law. "The acquisition may be finally approved by the U.S. Department of Justice after an in-depth investigation."

The U.S. Federal Trade Commission has also begun an extensive antitrust investigation into Prince Technology.

Antitrust lawyer David Barto said. As long as Prince Technology allows other mobile phone brands to use their patents, and software such as WeChat also supports other mobile phones, then Prince Technology should not face antitrust issues.

Lin Wenwu, president of Prince Technology, also said that the acquisition would be approved by regulatory authorities. Because it's a competitive acquisition.

Prince phones also need patents from other companies, and it does not restrict other companies from using their patents.

Under an agreement between the two antitrust agencies, the U.S. Department of Justice and the U.S. Federal Trade Commission, the former will be responsible for all scrutiny of the Oji Technology acquisition, while the latter will be responsible for conducting a broader investigation, according to two people familiar with the matter.

The U.S. Department of Justice has also been responsible for reviewing mergers and acquisitions in the telecommunications sector.

Gena Talamona, a spokeswoman for the U.S. Department of Justice, declined to comment on whether the department wanted to review the Motorola takeover.

EU regulators also said the deal would also be subject to scrutiny by EU regulators who are conducting an antitrust investigation into Prince Mobile. In investigating the deal, EU officials will consider whether Prince Technology will use its current position as the world's most popular instant messaging and social networking software to form a monopoly in the mobile device space.

China's Ministry of Commerce has also spoken to review the acquisition, but everyone knows that this is the official language, and even if all other countries oppose it, Huaxia will definitely be in favor.

After Prince Technology and Motorola announced the acquisition, the shares of rivals such as Nokia, Apple, and Samsung all fell.

The market believes that after Prince Technology has Motorola's technology, it will be more competitive in the world, and at the same time, it will no longer be afraid of other companies' patent monopolies.

Nokia expressed concern about Prince Technology's acquisition of Motorola, believing that Prince Technology's acquisition of Motorola may affect market competition.

Apple Jobs said that he was pleased to see the rise of an emerging technology company, believing that Motorola could help Prince Technology make better products, give consumers more choices, and be conducive to competition and innovation in the smartphone market.

In general, because Prince Mobile Phone and Motorola do not have absolute market dominance, it is not difficult to pass the approval of various countries, it is just a matter of time. (To be continued.) )

...