Ever since Google announced its $12.5 billion deal to acquire Motorola on Monday, its stock has been taking a hit. Today, with the entire market in a tailspin over global economic concerns, Google's market cap is down $17.4 billion (in midday trading) since Friday's close. In other words, Google has lost more market value than the entire amount it is going to pay for Motorola. And the proposed deal (which still must pass regulatory review) is all cash, so fluctuations in Google's share price won't affect the final amount Google has to pay. Of course, by the time the deal closes probably next year Google's market cap will be vastly different than it is today. And today's 22-point drop in Google's stock price is related more to the overall market rout than to the Googorola deal. Still, as of yesterday, Google's market cap was down $10 billion since the deal was announced (based on Google's 326 million shares outstanding). There is no getting around the fact that Wall Street does not like this deal.Source: http://feedproxy.google.com/~r/Techcrunch/~3/vw9ZmALfyqw/
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