In 2012, Google Inc. bought Motorola Mobility for 12.5 billion dollars. The purchase was widely covered by the media, experts disagreed on why they made such a large purchase. Here are the two leading theories on the reasoning behind Google’s purchase of The Motorola Mobility.
Some speculated that Google Inc. wanted to start manufacturing their own Android phones. Motorola Mobility had a long history of developing device and phones, and many of their products sold well. As an attempt to secure more money from their popular Android platform, Google may begin to sell official versions of Android devices.
Others believe that the purchase had more to do with Motorola Mobility’s patents. As a leading innovator in the mobile phone arena, Motorola Mobility has a large number of patents that can be used if Google Inc. or companies that use Android system are sued. When it comes to dealing with patent lawsuits, having a war chest is important for avoiding expensive settlements and having products removed from the market.