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Google acquires Motorola Mobility for $12.5bn; price tag rises post-sale
After going back and forth to regulators around the world, the Chinese government finally accepted the deal that would see Google buy smartphone maker Motorola Mobility for $12.5 billion in order to acquire more than 17,000 patents. Google needed the patents -- above all else -- to help fend off litigation by Apple and others, who continue to sue Android-powered smartphone makers, such as Samsung, while avoiding suing Google flat-out.
Because the now Google-owned division was struggling financially, Google had no option but to restructure the entire business. All in all, the cost of the sale was bumped by a further $340 million -- pushing the overall price tag close to $13 billion.
For now, we still have no idea if the sale was worth the full almost $13 billion, but the courts will soon decide. In the Microsoft v. Motorola (Google) legal spat, a court will decide how much Microsoft should pay Google in royalties for patents that it owns.
Ultimately, this trial will determine how much the Motorola patents are actually worth, meaning Google has far less leverage with its other patent partners that could lead to the search giant generating far less in deals with other smartphone makers.