Is the Motorola/Google merger a game changing event?

hughye

So Google had an extra $12.5 billion to spend, and Motorola was just sitting there bored...

Motorola's stockholders voted pretty darn close to unanimously to accept Google's multibillion dollar merger offer. What does this merger mean in the big scheme of things. There were already Android phones manufactured by Motorola, so what does Google get out of this? I can see what Motorola gets (see that $12.5 figure). What impact is likely from this merger, assuming it goes through?

Topic: Business
Answer this Question

Answers

1 total
jimlynch
Vote Up (22)

Hi hughye,

Google gets tax, accounting and patent benefits, according to the article below.

Motorola deal offers Google tax, patent benefits
http://www.reuters.com/article/2011/08/31/us-motorolamobility-google-tax...

"Google Inc's blockbuster acquisition of Motorola Mobility Holdings Inc will bring an unusual stable of tax and accounting benefits to the search-engine giant, already one of Corporate America's most savvy users of such perks.

The deal also underscores a trend by technology companies to snap up patents in a bid to stave off competitive threats and patent-infringement lawsuits. Google's patent portfolio is seen as one of the weakest in the industry.

By agreeing on August 15 to pay $12.5 billion in cash for struggling Motorola Mobility's vast portfolio of 17,000 patents and 7,500 pending patent applications on top of its handset business and television set-top boxes, Google is building a defensive bulwark for its Android phone software, already available on Motorola phones among others."

Ask a question

Join Now or Sign In to ask a question.
Those Normal 3D printed earbuds we looked at a few weeks ago have some competition, and OwnPhones are wireless (and of course, more expensive).
The cable giant’s attachment to its subscribers is getting downright creepy
Only six weeks after its release, Apple’s new programming language appears to already be on its way to replacing Objective-C
The recent release of Ubuntu 14.04 Long Term Support/LTS (Trusty Tahr) proves to us once again that it doesn't matter if you're Oracle, Microsoft, or Canonical: Bringing a fleet of products into new release revision synch is tough.
Will we see anything sillier than a Kickstarter campaign to make potato salad? Wait, don’t answer that
The spy accusations between the US and China are screwing up the deal.
If you gave up cable TV in favor of Aereo, get ready to make it up to your cable guy
It seems like the selection of content accessible via our streaming devices improves every week.
New research into the reasons for software compilation errors at Google helps to reveal ways to improve developer productivity
Amazon’s new smartphone can track your head movements; what could go wrong?
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

randomness