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Text Chapter 486 Acquisition of Motorola

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    The advent of the Prince mobile phone has also accelerated the death of many brands.  For example, Motorola has been losing money for many years.  Starting in 2006, this former mobile phone giant began to suffer losses.  After Motorola replaced Indian-born Sanjay Jha as CEO in 2008, it started drastic reforms and adjusted the direction of product development, switching from feature phones to smartphones and betting on the Android system.  At the same time, we will adjust the company's management model and reduce expenses.  Starting in 2009, Motorola has developed its own Android smartphones. It cooperates with the largest operator in the United States and China Telecom, and its sales are also very good. ? 2010 was originally the year that Motorola placed high hopes on turning losses into profits, but unexpectedly the Prince Phone suddenly appeared. Under the attack of Apple 4 and Prince Phone, Motorola collapsed.  Another loss this year has become a foregone conclusion.  Nokia, the leader in the mobile phone industry, has also been hit hard. Smartphones have been completely defeated in China, and they have also been attacked by Apple 4 abroad. Although they will not suffer losses, their performance will decline significantly.  This year, the stocks of Motorola and Nokia have both fallen sharply.  The production of Prince mobile phones dropped sharply, but Prince Technology did not stop the pace of development. Instead, it formally proposed to Motorola its intention to acquire Motorola¡¯s smartphone business and the 17,000 patents it holds.  Motorola¡¯s shareholders have also bought out the long-term losses, and under the attack of Apple 4 and Prince mobile phones, Motorola has no hope of turning around losses. Now that Prince Technology is willing to acquire, naturally it will not refuse to sell.  However, Motorola believed that after they sold the patents, it would be difficult for the rest of the hardware business to operate independently, so it proposed to be acquired by Prince Technology as a whole.  After a period of negotiations, Prince Technology and Motorola set a purchase price of US$10.5 billion.  If Prince Technology breaks the contract, it will need to pay US$2.5 billion in compensation.  If Motorola breaks the contract, it will need to pay US$500 million in compensation.  On November 25, Prince Technology and Motorola announced the results.  Motorola¡¯s board of directors has approved the transaction, while Wang Zixuan alone has the final say.  This news shocked the technology world as soon as it was announced.  After Prince Technology obtains a large number of Motorola¡¯s patents, it will help Prince Technology and other companies carry out cross-exchange licenses and reduce patent expenses and litigation.  Although Prince Technology has paid a large amount of patent royalties, it has been sued by Apple, Microsoft, Samsung and other companies for patent infringement during this period.  Of course, for a technology company, it cannot be considered a successful company unless it is sued.  Whether it¡¯s Microsoft or Apple.  Or Samsung, they are sued from time to time, and the lawsuits between them are constant.  At the same time, Motorola¡¯s smartphone technology is also helpful for Prince Mobile.  ??In the eyes of Chinese people, this is an even more remarkable acquisition.  Motorola is also a high-end brand in the eyes of many Chinese people. Prince Technology¡¯s acquisition of Motorola is definitely a matter of revitalizing national pride.  However, Prince Technology¡¯s acquisition of Motorola still needs to be approved by regulatory authorities in the U.S. Department of Justice, the European Union and other countries.  Although Prince Technology is a newcomer in the industry, it occupies a large market in both the instant messaging field and the mobile phone field.  Motorola also has a large market, and the combination of the two is likely to affect free competition in the market.  Microsoft¡¯s acquisition of WhatApp and Facebook¡¯s acquisition of Wonderful Moment, which were agreed this month, must also be approved by various countries, because Microsoft and Facebook are industry giants, and the acquisition of Whatapp and Wonderful Moment is likely to form a monopoly.     certainly.  Basically, these acquisitions are approved.  Antitrust lawyers and analysts say that in order for the U.S. Department of Justice to pass Prince Technology¡¯s acquisition of Motorola Mobility, Prince Technology may need to make some concessions.  The U.S. Department of Justice may add additional conditions to ensure that Prince Technology does not use any Motorola patents to harm competition in the smartphone market.  Prince Technology may be required to license some patents to competitors.  ¡°Today, all the antitrust agencies are interested in Prince Technology,¡± said Harry Foster, a professor at New York University School of Law.  "The acquisition may finally be approved by the U.S. Department of Justice after an in-depth investigation." The U.S. Federal Trade Commission has also begun a broad antitrust investigation into Prince Technology.  Antitrust lawyer David Barto said.  As long as Prince Technology allows other mobile phone brands to use their patents, and software such as WeChat also supports other mobile phones, Prince Technology should not face antitrust issues.  Lin Wenxi, President of Prince Technology?It also stated that the acquisition would receive regulatory approval.  Because this is a competitive acquisition.  Prince mobile phones also require patents from other companies and will not restrict other companies from using their patents.  According to two people familiar with the matter, under an agreement between the two antitrust agencies, the U.S. Department of Justice and the U.S. Federal Trade Commission, the former will be responsible for all reviews of the Prince Technology acquisition transaction, while the latter will be responsible for conducting a broader investigation.  The U.S. Department of Justice has also been responsible for reviewing mergers and acquisitions in the telecommunications industry.  U.S. Department of Justice spokesperson Gina Talamona declined to comment on whether the department will review the Motorola acquisition.  EU regulatory authorities also stated that the transaction will also be reviewed by EU regulatory authorities that are conducting antitrust investigations into Prince Mobile.  As they investigate the deal, EU officials will consider whether Prince Technology could use its current position as the world's most popular messaging and social software to create a monopoly on mobile devices.  The Ministry of Commerce of China also stated that it will review this acquisition, but everyone knows that this is the official language. Even if all other countries oppose it, China will definitely approve it.  After Prince Technology and Motorola announced their acquisitions, the stock prices of competitors such as Nokia, Apple, and Samsung all fell.  The market believes that after possessing Motorola¡¯s technology, Prince Technology will become more competitive in the world and will no longer be afraid of other companies¡¯ patent monopoly.  Nokia expressed concerns about Prince Technology¡¯s acquisition of Motorola, believing that Prince Technology¡¯s acquisition of Motorola may affect market competition.  Apple¡¯s Steve Jobs said he was happy to see the rise of an emerging technology company and believed that Motorola could help Prince Technology make better products, provide consumers with more choices, and be conducive to competition and innovation in the smartphone market.  Generally speaking, because neither Prince Mobile nor Motorola have absolute market dominance, it is not difficult to pass the approval of various countries. It is just a matter of time.  (To be continued, please search Piaotian Literature. The novels will be better and updated faster!
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