Google to purchase Motorola Mobility – $12Billion
this is supposed to be already approved by members of the board by both parties. regulatory approval is pending along with shareholders approval.
This is a VERY interesting play by Google considering a high profile blog post by David Drummond, Google’s SVP and Chief Legal Officer on August 4th 2011.
A hostile, organized campaign” against Android on the part of Microsoft, Apple, Oracle and others, his original blog update with a response to what he calls Microsoft’s “false gotcha.”
Microsoft brought up the fact that it had offered Google the opportunity to bid jointly with it on the Novell patents, and that Google turned it down. According to Drummond, however, such a joint acquisition would have “eliminated any protection these patents could offer to Android against attacks from Microsoft and its bidding partners,” and that it “didn’t fall for it.” He further goes on to note that the Justice Department’s eventual intervention in the acquisition — which required the winning group to provide a license to the open source community — only backed up Google’s case, and reaffirmed its original point that its “competitors are waging a patent war on Android and working together to keep us from getting patents that would help balance the scales.”
Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”
We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.
We’ll see how Google continues to manage Motorola Mobility, how the top brass and board changes and how this kind of “favoritism” affects other Android licensees, or how it benefits them.