updated 06:30 pm EDT, Wed September 28, 2011
Google faces hurdle as DOJ wants more on Motorola
Google's Senior VP in charge of the takeover of Motorola, Dennis Woodside, posted Wednesday that the Department of Justice had asked a second time for information on the $12.5 billion dollar deal. What that entailed wasn't mentioned. Woodside minimized the significance of the second request and was confident the buyout would still go through.
"This is pretty routine; we've gotten these kind of requests before," he argued. "While this means we won't be closing right away, we're confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes."
Second requests don't necessarily mean the DOJ will oppose the deal but do often signal that there are enough problems for a serious concern to exist. The demand might delay the deal or see Google make concessions.
Some of the issues might have been raised by Google apparently doubling back on its own position on the value of the deal. At first, it focused solely on the patents and promised to keep itself at "arm's length" from Motorola. Later, however, both rumors and Google chairman Eric Schmidt revealed that hardware was part of the plan. The company as a consequence will be competing against many of its own partners and could use its development of the OS to give itself first crack at new operating systems as well as better integration than its partners.