S&P says sell Google's shares after Motorola deal

Aug 16, 2011

(AP) -- Standard & Poor's is saying investors should sell Google's stock because it believes the search leader's decision to buy Motorola Mobility increases the risk to the company and its shares.

Google Inc. said Monday it will pay $12.5 billion for Mobility, a major maker of phones using Google's Android mobile software. The deal includes mobile patents that could help defend itself against rivals.

S&P said that while the acquisition would include a patent trove, that might not be enough to keep Google's Android mobile operating software from encountering intellectual-property issues. It downgraded its rating on Google's shares to "Sell" from "Buy."

Further, the ratings service says the transaction will hurt Google's growth, margins and balance sheet.

S&P cut its price target for Google's stock by $200 to $500.

Explore further: Sony founder nephew starts as head of PlayStation unit

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Motorola Mobility buys mobile software firm 3LM

Feb 14, 2011

Motorola Mobility has made its first acquisition since being spun off as a separate company, buying mobile software maker Three Laws Mobility in a bid to expand corporate use of Android phones.

Feds likely to let Google buy Motorola Mobility

Aug 16, 2011

(AP) -- Federal regulators are unlikely to block Google Inc. from buying cellphone maker Motorola Mobility since the acquisition could help drive competition in the fast growing mobile device market.

HTC accuses Apple of patent infringement

Aug 16, 2011

Taiwan's HTC Corp. accused Apple of patent infringement on Tuesday in the latest salvo in an ongoing legal battle between the smartphone giants.

Recommended for you

Job listing service ZipRecruiter raises $63 million

4 hours ago

ZipRecruiter, a California start-up that tries to simplify tasks for recruiters, has raised $63 million in initial venture capital funding as the 4-year-old service races to keep up with growing demand.

Alibaba IPO comes with unusual structure

13 hours ago

Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant's U.S. public offering will need to get comfortable with an unusual business structure.

User comments : 0