In news sure to shock the markets this morning positively ahead of the opening bell, Google has announced that it has purchased Motorola Mobility for $12.5 billion in a cash transaction, with Google’s goal being to leverage Motorola Mobility’s extensive patent portfolio in the wake on continuing litigation concerning its Android operating system and recent developments regarding alleged patent infringement.The purchase of Motorola Mobility also follows its failure to purchase the wireless patent portfolio of the bankrupt Nortel Networks, which was purchased by a consortium of companies who ironically will use the portfolio defensively in their own litigation.
With the purchase, Google also gains one of the oldest cellular hardware manufacturers in the industry, as Motorola pioneered the modern cell phone with the DynaTAC and introduced the clamshell formfactor to the masses with the StarTAC in the late 90’s before scoring its biggest hit in the RAZR in the first half of the 2000’s before nearly failing as a company in 2007 due to a lack of a true successor or direction.
With the company nearly close to collapse, the decision was made to split Motorola into two separate trading entities in 2008 before adopting Android as its revival plan and releasing what would be its first hit since the RAZR in the Motorola Droid in 2009 to compete with the iPhone to great success with the help of Verizon Wireless and continuing to develop and release Android devices, with its latest devices in the Photon 4G for Sprint and the Motorola Triumph for Virgin Mobile. The purchase is expected to be complete in the first half of 2012, with the purchase being approved by the boards of directors for both companies.
