Google to cough up $2.5 billion if Motorola deal falls through
Google has agreed to pay Motorola Mobility $2.5 billion if its planned acquisition of the cell phone vendor fails to close, Bloomberg claims. The report cites an anonymous source as having revealed the figure, which Bloomberg says is more than six times the typical breakup fee for such deals. Google announced on Monday that it plans to . While the proposed deal would give Google complete control over future Android device experiences, it would also as it prepares to do battle with the likes of Apple and Microsoft. These patents are seemingly so important to Google that it is willing to part with a massive sum should its acquisition fail to get necessary approval. “A high reverse breakup fee shows the buyer’s confidence of getting the deal done,” Donna Hitscherich, a senior lecturer in finance at Columbia Business School, told Bloomberg. “People don’t do deals to get the breakup fee, they do them to get the deals done.”
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