Google acquires Motorola Mobility $12.5 billion, seizing war chest of patents and first hardware platform
Google is adding some big weaponry to its arsenal with a $12.5-billion acquisition of Motorola Mobility.
The deal, which saw the software giant pay a 63% premium on the ailing mobile device manufacturer, will boost Google's patent portfolio and enhance its hardware resources.
Motorola's stock is, of course, skyrocketing on the news, but Google's has actually dropped 3%, signalling that investors are wary of this very big and very unexpected move.
Motorola's war chest of nearly well over 20,000 patents finally enabled the company to hold its own against established giants like Microsoft and Apple, who have been devouring Android in court battles, shedding blood on patent infringements.
Patent wars, in fact, are exactly the reason for the acquisition, and Google CEO Larry Page openly admitted as much.
Secondarily, the acquisition of Motorola Mobility sees Google take ownership of a hardware platform for the first time. However, any preferential treatment to Motorola over third-party manufactuers such as HTC might scare them away and do Google more harm than good.
