Posts Tagged Motorola
By now most tech enthusiasts must have heard the earth shattering news of Google buying up the consumer electronics division of Motorola. The $12.5 billion deal has raised questions of almost everyone. Google has agreed to pay $40 per share in cash, over 60 percent more than the stock’s value at the time.
Though, very few experts have criticized the deal, what everyone is asking is – Why? There are many plausible reasons behind this buyout. But what prompted Google to make this huge purchase. Is there something that we don’t know?
The reason behind this deal is patents. Motorola mobility has over 14,000 patents and another nearly 7,000 pending. By acquiring these, Google can help ward off lawsuits filed by Apple, Microsoft, and others who have claim Google has infringed on their patents.
There 18 specific patents Motorola Mobility owns that can help Google in their latest of legal battles. These patents were previously used by Motorola Mobility when it had a legal tangle with Apple. These lawsuits not only targeted iPhone but also roped in iPad, AppleTV, and MacBook Air. Four of those 18 patents were also used against Research in Motion, which resulted in the BlackBerry manufacturer to pay royalties.
Perhaps, Google wants to payback other companies with the same coin.
One sore point in this whole deal is how Smartphone manufacturers like Samsung and HTC will react to this deal. Will Google still remain committed to these manufacturers and the openness of popular mobile platform Android?
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