The Google Motorola purchase plot has thickened further, with the news that Google was in fact not being pro-active but reacting to Microsoftâ€™s efforts to secure a major patent licensing deal with Motorola.
Business Insider reports Microsoft was close to settling its patent dispute with Motorola, and signing a cross-licensing deal like it’s done with HTC and other companies. This may have been whatwas behind Sanjay Jhaâ€™s comments from the weekend, where he said he was open to adopting Windows phone 7 if he had as good a deal as Nokia had. His comments likely spurred Google into offering an even larger premium the company which has frankly been sliding these last few quarters.
Motorola had already signalled that it was prepared to go on the patent offense, using its patent library to raise licensing revenue from other Android OEMs. Google is seems had no real alternative to buying Motorola.
Microsoft on the other hand is set to position themselves as the more open platform without the massive conflicts of interest Google has now inherited, and is now, according to Business Insider, even less likely to purchase Nokia or RIMM.
The Register however reports the deal may in fact be a dud, with the patents Google purchased not close to as relevant or valuable as Google imagined.
To add a Machiavellian twist, did Microsoft just force Google to blow $12.5 billion on nothing useful. How is that for a â€œfalse gotchaâ€?