The deal with Lenovo confirms that Google’s main interest in buying Motorola was its patent and IP portfolio because the company will retain the “vast majority” of patents as part of the deal. Lenovo will have a license to all IP, plus will gain over 2,000 patent assets.
Google creates a much simplified business environment by divesting itself of Motorola Mobility. It removes the channel conflict with other Android smartphone makers because Google will no longer have its own competing smartphone hardware division. Like Apple, Nokia, and Palm before it, Google has failed to balance the competing business demands of distributing operating systems while also making hardware. Where those companies chose to downplay their OS licensing business in favour of their own hardware play, Google did the opposite and sacrificed Motorola.
Lenovo benefits in four key areas through the acquisition: …
Read the rest of the analysis on the IHS Technology website
Filed under: Business models, M&A, Strategy Tagged: Google, IP, Lenovo, licensing, Moto, Motorola, Motorola Mobility, patents
