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Monday, August 15, 2011

Android parent Google pays $12.5 billion for handset maker Motorola Mobility

Google The deal carries two attractive features for Google: It can now directly manufacture its own smartphone handsets, instead of having to license its popular Android technology to others. And it buys a large portfolio of patents held by Motorola, which better arm it to fight what many are calling "the patent wars." The Wall Street Journal says "the deal is nominally about mobile phone handsets, where Google is a tiny player and would remain small even after the acquisition." But what Google may desire even more is the collection of patents held by Motorola. Large companies such as Microsoft and Apple are buying up patents. As for the Android system: The Journal suggests that the U.S. Department of Justice may lay conditions on the deal, such as the requirement that Google license Android to any other maker. The Journal points to the "extraordinarily large sum" of the breakup fee: $2.5 billion. For radio, the deal is important as more and more radio is heard as IP radio or smartphones using Android and other systems.

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