A Google Motorola case study reveals that Motorola was ripe for Google to drop it like a 'hotcake.' To Lenovo of course. The price? A whole 2.9 billion.
Motorola had numerous patents, which were defended by Google in courts. Motorola's patent portfolio included core pieces of technology like Wi-Fi and GSM. Motorola's impressive collection of 24,000 patents and patent applications.
The challenge for the Mountain View, California firm was to rescue the ailing phone maker with a $12.5 billion purchase. But the Google Motorola case study is not as simple as that.
Google had to deal with its own competitors on the Android hardware front, a task it has done well until now. So much so that reports say there are more Android phones than those running on an iOS.
With a new release of the highly anticipated iPhone 6, this could mean more stiff competition for Android. A Samsung Galaxy S5 is also ready for launch, so the stakes are high for Google Android.
When Android was first introduced, there was a confusion about "standards-essential" patents that could block products from rivals. Motorola has filed litigation in favor of blocking iPhone sales in the U.S, when analysts looked at the Google Motorola case study.
Analysts say, if Google's acquisition of Motorola helped to block the iPhone, it could have been the best thing Google has done for $12.5 billion.
Judge Richard Posner of the 7th Circuit completely threw out the case after deciding neither Apple nor Motorola had even demonstrated any reason to be in court
Motorola's patent portfolio was essentially worthless to Google. More lucrative partnerships with Samsung would create better synergistic opportunities compared to Google's alternate revenue streams.
The hardware side of the Motorola acquisition could have spelled success for Google, if in fact obtained leverage for its Android partners may have actually paid off: by building its own phones, Google gained valuable leverage over the Android partners, particularly Samsung.