By When Google and Motorola originally announced plans for the former to buy the latter for $12 billion, they anticipated being able to close the deal before the first quarter of 2012 was over. We saw pretty much every antitrust regulation committee from pretty much every relevant country approve the deal, but China wasn’t so fast to pull the trigger on the red ink pen.
Unfortunately, we’re still not sure how long that’ll take. Motorola has sent a filing to the SEC informing them that China has prolonged their investigation of the proposed acquisition and must now move their target to the first half of 2012.
Even then, they’re not ready to guarantee even a sizable window for China to approve the deal. We’re sure they’re anxious to get this deal closed but they’re simply going to have to wait. [via Light Reading]
I wonder if they’re more worried on how it’ll affect competition with their local brands.
The Chinese are pi$$ed off at Google over the search engine censorship war. They are now dragging their feet in a childish act of revenge.
I’m confused how China has control over a Google and Moto merger.
Google and Motorola both do business in China, which is a massive, and massively growing market. If Google and Motorola wish to continue to sell their products and services in China, they must have permission from the Chinese government.
Can’t they just continue to operate as 2 companies in that country?
Only if China says they can. China isn’t about playing fair. They will do anything to preserve the competitive advantage of their own businesses, including, but no limited to, currency manipulation and placing overbearing restrictions on foreign businesses that wish to operate in China.
China is not really a communist country, nor is it a capitalist one. The only accurate description for the socio-economic system currently being practiced in China is socialized fascism. Private industry is allowed, so long as it serves the interest of the government.
I believe it’s similar to “State Capitalism”, where capitalism exists, it’s just run by the state; i.e. the state is the one who allocates the funds. Russia was somewhat similar in approach. Socialist Fascism was a little closer to Nazi Germany’s style.
However it seems that China has allowed a little bit more of a “free market” than the above mentioned in the sense that they have a slightly more enterprising system.
China did the same thing when Motorola wanted to sell their Networks division to Nokia-Siemens Networks. The deal was eventually approved, but they managed to strong-arm concessions to protect their own (state-owned) businesses. Expect the same this time.
where’s MY MOTOROLA NEXUS?
I’m sorry, China, CHINA, CHINA(!), is concerned about antitrust issues???
=o?
what are they 12? fucking china stop playing games.