It is very simple to deduce why Google went for Motorola Mobility. The reason is clear – the patents. Google wants to protect Android defensively and offensively. Nothing scares Google than the imagination of Android being stymied by legal issues arising from real and frivolous patent infringements. So, it did the right thing and bought Motorola Mobility.
Do not be deceived – Google is not going into any hardware business soon. Even if it decides to make newer versions of Droid, it is not going to make great ones. Hardware is not in its DNA despite having Motorola Mobility to play with.
Forget the phones, the cable set-top boxes, Google went for those patents because it is afraid of American lawyers. Now, those lawyers must do defense and not just offense. Google can bring its own attack on any company with Motorola patents. It is a contact game right now.
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Motorola has more than 17,000 patents which are actually the main assets Google went for. Now it can compete with the conglomerates that bought the ones held by Nortel. Google is now a legitimate contender in the mobile ecosystem not just in the software side but in the hardware. It can challenge and sue anyone for violating any of the patents and now people will be careful on how they sue them
Motorola is a goldmine. It has 7,500 pending patents which makes this deal even sweeter. The patents would help Google defend Android, the world’s most adopting mobile operating system, against litany of lawsuits alleging that Google and its partners stole ideas and innovations of other companies.
But this is the not the end of M&A as the ICT industry becomes an oligopoly and runs like utility boards. If this deal is approved by regulators, Microsoft will go for Nokia or Blackberry. Even Oracle can go into this game. Nothing is excluded because the sword has been drawn.
We are in the patent war era with all the parties suing and enriching lawyers. And it will not end soon. But for Android, the litigants have lost. They just have to come prepared because Motorola Mobility is an innovation powerhouse and will help Google stay in this game, excellently.