15 Aug '11, 2pm

Google Buys $12.5B Shield Against Patent Suits

Google Inc. says it’s buying Motorola Mobility Holdings, Moto’s wireless phone unit, for $12.5 billion in cash. Google shares fell, as the acquiring company’s stock often do, by about 3% in premarket trading, according to the Associated Press. But Moto shares rocketed 60%. Google gets Motorola Mobility’s substantial patent portfolio, which will be a boon to Google’s Android product line and give it some cover in the patent lawsuits lobbed by smartphone competitors. In a statement , Google CEO Larry Page said that having the portfolio will help the company “better protect Android from anti-competetitive threats from Microsoft, Apple and other companies.” Not to be overlooked is the fact that open-source champion Google will finally own the hardware on which its operating system runs. It’s competitors own their software and hardware, and guard them aggressively. Page said th...

Full article: http://www.searchenginejournal.com/google-buys-12-5b-shie...

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