As for the
patently blatant patent play, others are curious: Why did Google opt to buy the
whole Motorola Mobility enchilada? This Is My Next blogger Nilay Patel questioned why Google
acquired all of Motorola instead of just its patent treasure trove:
said, it's still curious why Google spent the full $12.5b on Motorola, instead
of a smaller amount acquiring the rights to Moto's patents-or the rights to
litigate with those patents."
We have a
theory: Motorola CEO Sanjay Jha didn't give them a choice. By making Google buy
Motorola at a 63 percent premium, Jha and the company's shareholders get a big
They get more
money and protection from litigation, bundled with the ability to operate their
core business, which is hanging on, independently. Motorola investor Carl Icahn
can wax ecstatic.
How much did
those patents cost Google? Jefferies & Co analyst Youssef Squali has an
believe that Google is paying approximately $9.5B for MMI's patents, assuming
$3B in value for MMI's home and devices businesses. This implies $560K per MMI
patent vs. $700K that Apple/Microsoft consortium paid per Nortel patent."
play came cheap. Speaking of the patents, FOSS Patents blogger and IP expert
Florian Mueller doesn't see the Motorola patents as a major defense for
current litigation versus Android
, noting that Apple and Microsoft
still sued Motorola despite its massive patent chest.
Looking to the
future, the patents could provide good protection for Google, others believe.
Sometimes the best defense is a good offense.
intellectual property standpoint, the acquisition bolsters Google's negotiating
position with Apple, in the event that Apple goes after Android-based products
the same way it did with Samsung in Europe," said Francis Sideco,
principal analyst, wireless communications, for IHS. "If nothing else,
Google will be able to assert Motorola's IP for the 3GPP and 3GPP2 cell phone
specifications, which are used in both the iPhone and iPad."
of the antitrust issues? When some people learned of the deal, they speculated
the Federal Trade Commission and/or Justice Department would investigate it for
antitrust issues. What antitrust issues?
are no antitrust or regulatory concerns that would constitute deal
breakers," Stifel Nicolaus analyst Rebecca Arbogast said in a research
note obtained by AllThingsDigital Aug. 15
. "It would seem
unlikely the deal would be blocked in the absence of any significant horizontal
market concentration issues. We also don't see why the government would have a
problem with Google arming itself in the smartphone intellectual property wars
by gaining access to the 17,000+ patents Motorola brings to the battle-a
primary Google objective."
interesting tack are you seeing this story take during day two? Drop us a line
in the comments section below.