Google shrugs off Nortel loss with big bucks purchase

Google has reacted to missing out on Nortel’s highly-prized patent portfolio by acquiring smartphone manufacturer Motorola Mobility Holdings for $12.5 billion, it was announced on August 15.

Google paid $40 per share, in cash, for Motorola Mobility. The transaction was unanimously approved by the boards of directors of both companies.

Motorola Mobility will remain a licensee of the Android operating system and Google will run it as a separate business.

Google has pointed to Motorola Mobility’s 80 year history of innovation in communications technology and products and the development of its intellectual property portfolio as a key reason for the purchase.

Google chief executive officer Larry Page commented on the purchase on his blog.

He referred to the US Department of Justice’s Antitrust Division investigation into the auction in which a consortium, which included Apple, Microsoft and Research In Motion, teamed up to purchase the patent portfolio belonging to bankrupt Canadian telecoms company Nortel for $4.5 billion in June.

He said: “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.”

“The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. I am confident that these great experiences will create huge value for shareholders.”