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Google buys Motorola Mobility for its patents

Motorola has more than 17,000 patents on phone technology that will help Google take the competition head on.

BestMediaInfo Bureau | Delhi | August 16, 2011

As a large company, Google is purchasing smaller companies all the time. Most of the time, these purchases never make the news. However, the latest acquisition is one of the few exceptions, because it is a large and important one: Motorola Mobility. Google Inc. is buying cellphone maker Motorola Mobility Holdings Inc. for $12.5 billion in cash.

It’s by far Google’s biggest acquisition to date and a sign the online search leader is serious about expanding beyond its core Internet business. Industry experts see the acquisition boosting its Android operating system and strengthening Google’s patent portfolio with Motorola’s collection of more than 17,000 patents on phone technology.

Google recently lost out to a consortium that included Microsoft Corp., Apple and Research In Motion Ltd. in bidding for thousands of patents from Novell Inc., a maker of computer-networking software, and Nortel Networks, a Canadian telecom gear maker that is bankrupt and is selling itself off in pieces

Motorola has nearly three times more patents than Nortel.

Motorola Inc was split this year into two: Motorola Mobility, which got the faster-growing cellphone and TV set-top box businesses; and Motorola Solutions, which sells gear like walkie-talkies to corporate and government clients.

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