Is Google acquiring Motorola for its 17,000 exclusive rights?

Published by Julia Volkovah under , , , on 6:49 AM

Google's declaration on Monday that it has decided to purchase Motorola's currently spun off mobile devices business -- listed on NYNEX as Motorola Mobility (MMI) -- for $12.5 billion could signify one of two things.

Either Google actually desires to acquire into the Android making business -- putting it into direct rivalry with Apple (AAPL), the only other seller that makes both a mobile opening system and the devices that run on it.

Or Google in fact wants the 17,000 exclusive rights and 7,000 patents pending that Motorola has accumulated over the years, including what CEO Sanjay Jha recently explained as having

"Precise stability in 2G and 3G essential, non-essential patents imperative to the delivery of spirited products in the marketplace, video especially solidity, decompression and security technologies and ultimately, a leading position in 4G LTE essential."

We'd put our money on the gaining as a patent play.

As Motorola has revealed with its Droid smartphones and Xoom tablets, promoting Android devices in Apple's shadow is a competitive business, with tough competition and razor-thin margins.

By distinction, the values of telecom patents like the ones Motorola possess are increasing quicker than gold, and Google -- whose range is especially lacking -- needs them greatly.

The Wall Street Journal noted Monday that shares of Interdigital (IDCC), which had climbed on gossips that Google might be requesting for its patents, are down 20% in pre-market trading. If Google gains Motorola, why would it want Interdigital?



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