While maybe a bit of old new market wise, the concept of Google’s bid of $12.5 billion for Motorola Mobility, better known as a troubled American maker of mobile phones (remember the razor) is still worth waining about. Because should the purchase actually happen, it will be Google’s largest ever acquisition for the search giant as it will almost double the size of its workforce.
However we have to ask ourselves, as “self” what is the attraction for an internet search and ad giant logic to make them want to take on the handset-maker’s 19,000 employees along with its rip-snorting 11% share of America’s Smartphone market? That’s right Virginia, none however lets now talk about its portfolio of some 17,000 patents. Ok not enough for you, well how about the fact they have yet another 7,500 in the pipeline?
So you ask how many [patents] does Google have today? Well let’s say their arsenal of around 2,000 patents would be considered Andy of Mayberry grade firepower wise. As this one move will hugely strengthen their position in current and future legal battles with its more heavily armed industry rivals like that Cupertino darning which goes by the name of Apple. As they are still smarting from their recent slap down in being defeated in auction for patents belonging to Nortel that now defunct Canadian telecoms firm who made hardware once upon a time.
It’s here we see Google is clearly desperate to win and what better way to show the world than to acquire Motorola’s portfolio: as it went so far as to offer the company a price that was a 63% premium over their closing price at the time of the offer. However what about the [Motorola] people you have to ask? You guessed it, betting dollars to donuts out on the street, the future of the product line, gone. So what does this all mean? Yes we’ve entered an economic environment where aggregated human capital is now a liability to be dealt with as surplus cord wood, as the driving value is the ability to either strong arm or avoid being strong armed in court.
However is this where we want to be, as is this the value proposition we as America want to hold out to the world? As while yes we are a capitalistic economy and driven as such, the end goal still needs to be the construction of social affluence as this is what keeps the economic engine turning and not patent attorney’s comparing their stacks of “patents” like some male phallic competition as in mine is bigger than yours…