The only reason that Google has listed out behind the acquisition of handset maker Motorola is that the purchase would “supercharge Android”. But it seems that the actual reasons were much more as compared to than just acquiring patents.
In a meeting, Google told analysts that Motorola’s actual property includes less than half of Google’s purchase price- $5.5 billion of the $12.4 billion.
Most of the companies, including Google are of the view that patents can act as a guard against any kind of legal attacks that may come from other big companies such as Apple. However, it seems that Motorola’s collection of mobile technology patents are not of much value to Schaumburg, the man behind the IL based phones. As a matter of fact, ever since the acquisition has taken place and cleared federal antitrust scrutiny, Motorola has added a loss of $233 million in operations and $1.25 billion in revenue.
But what comes as a surprise is that Google never discussed other reasons for buying Motorola, not even with analysts in the Mountain View, Calif. firm’s earnings. On the same, finance chief Patrick Pichette said, “Clearly, everybody should expect some changes at Motorola.”
Furthermore, Google also told federal regulators that Motorola’s invasion has helped them see a growth of $2.9 billion in cash, $2.6 billion from “synergies expected to arise from the acquisition,” $730 million from customer relationships, and $670 million from various other assets.
The actual worth of Motorola’s patent is valued more because it can safely lead Android devices from variety of legal threats. But the point is that whether Google will be able to provide this kind of security to all its allies.