Motorola fears regulatory issues, puts $2.5B “reverse termination fee”
Don’t get all excited about the Google-Motorola deal; there are still many aspects to talk about. Given the Google’s past of troubled acquisitions, regulatory checks and all, Motorola seems to have put $2.5 billion reverse termination fee on the deal.
Which means, if the acquisition does not go through for reasons including the government, Google would have to give Motorola $2.5 billion. This reverse termination fee is significantly higher [20pc] than the usual market standard, which is 3pc of the deal value.
Google has however noted in a conference call that they aren’t worried about the deal being seen as anti-competitive in nature.