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View Full Version : Google makes offer to buy Motorola Mobility - MMI Stock up 56%

XDCX
08-15-2011, 09:21 AM
In a surprising piece of news this morning, Google announced they have extended an offer to buy Motorola Mobility for $12.5 Billion. Motorola's stock (MMI) is up 56% as I type this.

Here's an interesting report from PC Magazine - click here (http://www.pcmag.com/article2/0,2817,2391094,00.asp)

As a maker of tablets and smartphones Motorola has had a bad year so far in 2011. They have only launched a few new phones and none of them have been outstanding sellers. Motorola's most anticipated phone, the Bionic for Verizon, has been delayed on a number of occasions and is now slated for a September release.

So why does Google want Motorola - in a word: Patents. Motorola has over 17,000 patents on file and Google only has about 1,000. It's been widely speculated that Google/Android is vulnerable to patent lawsuits - this deal with Motorola may quash some of those claims.

I know it's not related to the car business but I thought it was interesting. Google is a power house and they keep getting bigger.
mr4t60e
08-15-2011, 02:10 PM
Patents are a huge money-maker lately. Either Google was infringing on MOT's patents and preemptively bought them out, or they foresee a day when they can leverage their newfound patent inventory in a lawsuit against their competition. Patent trolls...sheesh.
XDCX
08-16-2011, 09:37 AM
Patents are a huge money-maker lately. Either Google was infringing on MOT's patents and preemptively bought them out, or they foresee a day when they can leverage their newfound patent inventory in a lawsuit against their competition. Patent trolls...sheesh.

Patents are a huge issue lately.

Based on what I've read many people feel Google/Android is vulnerable to suits from Apple and Microsoft and the purchase of Motorola provides Google/Android an element of protection.

There had been some discussion that Google was going to buy RIM, the maker of the Blackberry, for their patent portfolio. There's even some buzz that Microsoft will have to buy a handset maker to ensure their smartphone operating system doesn't get crushed by Android and Apple OS.