Google-Motorola Deal: Sanjay Jha Making $90 Million and Carl Icahn Making $600 Million
[Left: Sanjay Jha, Right: Carl Icahn]
Through the Google Inc. (NASDAQ:GOOG) acquisition of Motorola Mobility Holdings Inc (NYSE:MMI), two people that will make a substantial amount from the deal includes Motorola CEO Sanjay Jha and investor Carl Icahn. Sanjay Jha will make $90 million through the acquisition according to Footnoted’s Michelle Leder that looked through the company’s proxy statement.
Billionaire Carl Icahn put in quite a bit of effort to get Motorola Mobility Holdings to review their options for their patents. As a result, he will be getting a $600 million pay-out through the Google acquisition. Icahn and his affiliates own 33.5 million (11.4% in company stake) shares in Motorola. This stake is now valued at about $1.34 billion under the Google’s acquisition deal.
Icahn invested about $3.05 billion in Motorola’s common stock since 2008. He successfully lobbied the company to spin off their mobile phone business. Now Icahn’s holdings in Motorola Mobility and Motorola Systems Inc. may be valued at about $2.9 billion.
“Obviously, in 2008, we purchased the stock at too high of a price,” stated Icahn in an interview with Bloomberg Television’s “Street Smart with Carol Massar and Matt Miller.” He later added that his firm paid as little as $3 per share for Motorola stock. “We averaged it down and were pleased with the results.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry