Shareholder sues Motorola Mobility over Google sale
A Motorola Mobility shareholder has initiated a class-action lawsuit against the company after CEO Sanjay Jha announced intentions to sell the firm to Google for $12.5 billion. The shareholder hopes to block the sale and argues that Motorola Mobility failed to shop around for the best price. “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,” investor John W. Keating said in the lawsuit. “Motorola has experienced an economic resurgence since separating into two separate companies,” he added. “The Android smartphone technology it relies on continues to gain ground on Apple’s iPhone.” If the deal is approved, Motorola Mobility will pay its investors $40 per share in cash.