Does anyone know why Google bought Motorola? The products weren't great and the patents overvalued — so what did that $12.5 billion actually buy?
Why did Google spend $12.5 billion to purchase Motorola Mobility? It's been nearly two years since the deal was announced and close to a full year since it closed , and the questions keep piling up while the answers keep getting worse. The biggest problem is that Motorola's patent portfolio doesn't appear to be worth anything close to what either company assumed : the judge in the Microsoft v. Motorola patent case ruled yesterday that Redmond owes a paltry $1.7 million in annual royalties for using Motorola's standards-related Wi-Fi and video-encoding patents in every Xbox 360 and Windows 7 PC sold, rather than the $4 billion Motorola had originally demanded. To put that in perspective, it would take 3,235 years for Microsoft's royalties to pay off Google's $5.5 billion valuation of Motorola's patent portfolio. "THEY'RE 0-FOR-MOTOROLA." "These rulings show that the portfolio isn't nearly as valuable as Google t...