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hughye
Nov 18, 2011

Is the Motorola/Google merger a game changing event?

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?

jimlynch
11/18/2011
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."
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