When Google (GOOG) first offered to acquire Motorola Mobility(MMI), its bid was significantly lower than the final $12.5 billion. But over a few days, Motorola CEOSanjay Jha got Google to up its offer by a third, even though the company had no other suitors.
According to patent analyst Florian Mueller, fear was the motivator. Because its phones were so important to the success of Google’s Android, Motorola had some logical options that would have done heavy damage to the operating system. Combine this with some other market factors, and you might start wondering if Google’s free product strategy will really buy it the lasting brand and business advantage the company thought it would.
Four problems for Google
According to Mueller, it comes down to the patent litigation thatApple (AAPL) and Microsoft (MSFT) have brought against Motorola, as well as other Android hardware vendors. Motorola probably had a better defense than any other vendor except Samsung. Given that Motorola needs to do business and continues to lose money (making litigation even more painful), the company might have taken any of the four following tactics:
According to patent analyst Florian Mueller, fear was the motivator. Because its phones were so important to the success of Google’s Android, Motorola had some logical options that would have done heavy damage to the operating system. Combine this with some other market factors, and you might start wondering if Google’s free product strategy will really buy it the lasting brand and business advantage the company thought it would.
Four problems for Google
According to Mueller, it comes down to the patent litigation thatApple (AAPL) and Microsoft (MSFT) have brought against Motorola, as well as other Android hardware vendors. Motorola probably had a better defense than any other vendor except Samsung. Given that Motorola needs to do business and continues to lose money (making litigation even more painful), the company might have taken any of the four following tactics:












