Motorola Mobility Sued by Shareholder to Stop Sale to Google

[kptphalkon]

i wonder if this guy looked at the prospective of what motorola mobility would become under googles control. I personally would just take the 63% increase and reinvest it towards whatever google turns Motorola Mobility into, and pocket the rest.

 

[bosshog85]

The Guy is just greedy and trying to get more money.

Sent from my SCH-I400 using DroidForums

 

[NoBloatware]

It seems like most people here are totally against the lawsuit. I own some stock in Motorola and I'm not unhappy about the deal. HOWEVER, does anyone here have all the facts? Maybe this lawsuit is legitimate. Maybe the deal is too low and it isn't fair to shareholders. It wouldn't be the first time.

I totally disagree with the argument that "you should be happy you got that 60% increase in such a volatile market. Don't be greedy." #1, I don't care what kind of market it is, I want a good deal when it comes time to sell any stock I own. #2, I am greedy! What the heck is the point of investing if not to make as much money as possible? If you're investing and you're happy with selling for an unfair amount and you're not interested in getting the most then you're doing it wrong.

 

[djrajir]

It seems like most people here are totally against the lawsuit. I own some stock in Motorola and I'm not unhappy about the deal. HOWEVER, does anyone here have all the facts? Maybe this lawsuit is legitimate. Maybe the deal is too low and it isn't fair to shareholders. It wouldn't be the first time.

I totally disagree with the argument that "you should be happy you got that 60% increase in such a volatile market. Don't be greedy." #1, I don't care what kind of market it is, I want a good deal when it comes time to sell any stock I own. #2, I am greedy! What the heck is the point of investing if not to make as much money as possible? If you're investing and you're happy with selling for an unfair amount and you're not interested in getting the most then you're doing it wrong.

I think you are missing the point though, first and most importantly in its current state Motorola Mobility is only worth maybe 13 billion at most, and no one would ever pay the face value for something in the corporate world; however Google's offer 12.5 billion is coming very close to paying the actual value, which shows they really do care about increasing their patent portfolio.

Some other things to consider 63% increase in share value is HUGE for a company who has been seeing shave values drop. I can understand wanting to be greedy but investing in companies is, in some ways, like playing poker you have to know when to go all in and when to fold, but more importantly you have to know when to walk away from the table. Also keep in mind you, as a share holder, should see the values of your stock go up some before the end of september due to this announcement and the release of the Droid Bionic, at that time it might be wise to sell your shares. Just with the announcement from Google the share have jumped nearly 57% however this wont last and as the deal approaches share values will decrease drastically.

 

[NoBloatware]

I think you are missing the point though, first and most importantly in its current state Motorola Mobility is only worth maybe 13 billion at most, and no one would ever pay the face value for something in the corporate world; however Google's offer 12.5 billion is coming very close to paying the actual value, which shows they really do care about increasing their patent portfolio.

Some other things to consider 63% increase in share value is HUGE for a company who has been seeing shave values drop. I can understand wanting to be greedy but investing in companies is, in some ways, like playing poker you have to know when to go all in and when to fold, but more importantly you have to know when to walk away from the table. Also keep in mind you, as a share holder, should see the values of your stock go up some before the end of september due to this announcement and the release of the Droid Bionic, at that time it might be wise to sell your shares. Just with the announcement from Google the share have jumped nearly 57% however this wont last and as the deal approaches share values will decrease drastically.

I'm missing the point, huh? How exactly do you come up with the value of 13 billion for Motorola mobility? You seem very confident that this deal is good and my point is that I don't know if the deal is good. Please explain how you know. Also explain how I'm missing the point while you're at it.

Secondly, as I said it doesn't matter if the stock goes up 63% or 600%. What matters is whether it's a fair price. Furthermore, the point is that I may not agree that this is the time to sell my shares. Motorola and Google are deciding for me. That is the point: it may not be a good time to sell; it may not be a good deal.

Just with the announcement from Google the share have jumped nearly 57% however this wont last and as the deal approaches share values will decrease drastically.

Never mind, with this statement I can see that you don't know what you're talking about. As the deal approaches, Motorola's share price will go up until they reach the target price.

 

[guidot]

Can you explain what a "fair" price is? If 60% more than face in this economic status is not "fair," I don't know what is.

Please elaborate.

 

[NoBloatware]

Can you explain what a "fair" price is? If 60% more than face in this economic status is not "fair," I don't know what is.

Please elaborate.

You can't make a judgment of the fair price based on a percentage figure. The absolute number is all that matters.

Let's say you are offering a Droid 3 for sale. I say I'll buy it for $10 and you say no. I say, OK I'll pay $20. That's a 100% increase. That's a huge increase! Are you crazy to say no to a 100% increase in my offer even though the phone is worth hundreds of dollars?

I'm not willing to say that this lawsuit is frivolous. Many people here are talking like they know they exact value of Motorola Mobility. I call BS. People are making judgments about the worthiness of this suit with nothing to back it up and other people are saying people are greedy for not settling for a 60% increase but they're not considering the absolute value.

People can argue with me until they are blue in the face but unless they can show a detailed breakdown of all of Motorola Mobility's patents, trademarks, and all other assets, liabilities, investments, etc. then they're not really backing up their argument. As I said before and shown above with my Droid 3 example, "you should be happy with 60%" is a silly argument. "Motorola Mobility is worth $13 billiion" is a statement that needs to be backed up. That's the crux of this suit. To blindly trust that MMI's board and executives are looking out for everyone else's best interests is naive.

 

[djrajir]

I'm missing the point, huh? How exactly do you come up with the value of 13 billion for Motorola mobility? You seem very confident that this deal is good and my point is that I don't know if the deal is good. Please explain how you know. Also explain how I'm missing the point while you're at it.

Secondly, as I said it doesn't matter if the stock goes up 63% or 600%. What matters is whether it's a fair price. Furthermore, the point is that I may not agree that this is the time to sell my shares. Motorola and Google are deciding for me. That is the point: it may not be a good time to sell; it may not be a good deal.



Never mind, with this statement I can see that you don't know what you're talking about. As the deal approaches, Motorola's share price will go up until they reach the target price.

The point i was saying you are missing is Motorola is not doing very well, they have been on a downward slope since the start of the year. ( even in 2010 they wernt doing well @ 25$ a share but bounced back at the end of 2010 and start of 2011) As for how I came up with 13 Billion, I was going off of something i read from The New York times a few months back; however, after reading your reply I decided to do some research and see if I was wrong. While I couldn't find a single analyst saying MMI's value the general consensus is MMI is getting the better end of the deal money wise. In face a few over at marketwatch.com feel that google may be over paying.

As for if its a fair price that's hard to say, however, consider that MMI has not had a share value of 40$ in at least the last two years, though they have come close a few times. The price per share has been going down the last six months, hitting 21$ in June. After some leaks and posts about the Bionic the share value rose back to 24$ only to fall back to 22$ all within the month of June.

As for what I said about the stock dropping as the deal gets closer, I was referring to much later down the road and not because of the deal itself but because that's the trend MMI stock has been on; however, I may be wrong about this because I have never watched share values of companies that were in this process so i can only base my opinion on what i have seen with MMI. I would assume that with google saying they will pay shareholders 40$ a share traders will be attempting to sell at or near that value but again this is not an area I watch very often. I will say though today they were decreasing all day.

 

[yblaser]

People can argue with me until they are blue in the face but unless they can show a detailed breakdown of all of Motorola Mobility's patents, trademarks, and all other assets, liabilities, investments, etc. then they're not really backing up their argument. As I said before and shown above with my Droid 3 example, "you should be happy with 60%" is a silly argument. "Motorola Mobility is worth $13 billiion" is a statement that needs to be backed up. That's the crux of this suit. To blindly trust that MMI's board and executives are looking out for everyone else's best interests is naive.

Having not read the lawsuit I cannot comment on its merit, but several millions of shares per day were being traded before the purchase offer. That very large group of people valuated the share of MMI at much less than what Google is offering. If you believe in the free market then to the extent that all information is public that is the true value of the share. As a Motorola stock holder for over 10 years I have seen its value decline significantly. While there is always potential to get a higher offer, I think the risk is far greater than the potential reward and am fact considering selling my shares now in case the deal falls through.

 

[djrajir]

You can't make a judgment of the fair price based on a percentage figure. The absolute number is all that matters.

Let's say you are offering a Droid 3 for sale. I say I'll buy it for $10 and you say no. I say, OK I'll pay $20. That's a 100% increase. That's a huge increase! Are you crazy to say no to a 100% increase in my offer even though the phone is worth hundreds of dollars?

I'm not willing to say that this lawsuit is frivolous. Many people here are talking like they know they exact value of Motorola Mobility. I call BS. People are making judgments about the worthiness of this suit with nothing to back it up and other people are saying people are greedy for not settling for a 60% increase but they're not considering the absolute value.

People can argue with me until they are blue in the face but unless they can show a detailed breakdown of all of Motorola Mobility's patents, trademarks, and all other assets, liabilities, investments, etc. then they're not really backing up their argument. As I said before and shown above with my Droid 3 example, "you should be happy with 60%" is a silly argument. "Motorola Mobility is worth $13 billiion" is a statement that needs to be backed up. That's the crux of this suit. To blindly trust that MMI's board and executives are looking out for everyone else's best interests is naive.

O.O i didn't see this post when I made my last one. I personally am not saying that the board is looking out for anyone but themselves. I bet I can speak for everyone when I say it's almost a given that the executives dont care about every shareholder, or most of them for that matter; however, that is not the issue with this lawsuit, the issue is the assumption that the executives would not try to get as much as they can out of the sell. The very argument that supports the fact that the executives are not looking out for anyone but themselves could be used to point out that they would not sell MMI for anything far less then what their accountants tell them its worth.

I also wouldn't say this lawsuit is frivolous, because it does have purpose and I really think the guy feels his investment in MMI may be worth more. I will, however, say that its not likely to win and will more then likely be settled quickly as both companies do all they can to make sure the deal goes through.

 

[djrajir]

Having not read the lawsuit I cannot comment on its merit, but several millions of shares per day were being traded before the purchase offer. That very large group of people valuated the share of MMI at much less than what Google is offering. If you believe in the free market then to the extent that all information is public that is the true value of the share. As a Motorola stock holder for over 10 years I have seen its value decline significantly. While there is always potential to get a higher offer, I think the risk is far greater than the potential reward and am fact considering selling my shares now in case the deal falls through.

Yeah I agree with you. Also kkep in mind if this deal falls through the only winner here will be the exectuives that use the 2.5 billion to write their bonus checks.

 

[eagle1967]

look closer

I think if you look close to the bottom of the complaint it says

court filing sent from my iphone.

 

[NoBloatware]

All of the responses here after my rants have been hilarious brilliant spot on.

The notion that the stock market operates efficiently and demonstrates "true" values at all times can be...fantasy.

Sorry for rocking the boat my feathers. I am less than gracious but this is what happens when you think you know what you're talking about.

Consider the idea that Motorola was on it's way to being bigger than Apple.

Peace and love. Peace and love.

 

[ftajeffrey]

And you honestly think this acqusition will not benefit current share holders? Really?

 

[yblaser]

Sorry for rocking the boat my feathers. I am less than gracious but this is what happens when you think you know what you're talking about.

Consider the idea that Motorola was on it's way to being bigger than Apple.

I think you sound a bit under the influence or at least for your sake I hope you are.:icon_eek: