MARKET TALK: S&P Equity Not So Fond Of Google After Motorola Bid
3:25p ET August 16, 2011 (Dow Jones)
MARKET TALK: S&P Equity Not So Fond Of Google After Motorola Bid
3:25 (Dow Jones) Google's (GOOG) $12.5B deal to acquire Motorola Mobility (MMI) poses "greater risk" to the Internet giant and its stock, according to S&P Equity, which slashes GOOG all the way to sell from buy. "Despite MMI's extensive and valuable patent portfolio, we are not sure it will protect Android from [intellectual property] issues." S&P Equity sharply cuts its 12-month price target on GOOG shares to $500 from $700, saying MMI would hurt GOOG's growth, margins and overall balance sheet. The stock hasn't reacted to the news, and remains down amid the broader market's slide, recently trading off 3.6% at $537.08. (steven.russolillo@dowjones.com)