Originally Posted by RighteousTrader
Source: Reuters By Sinead Carew and Alexei Oreskovic | Reuters – 1 hr 15 mins ago
NEW YORK/SAN FRANCISCO (Reuters) - Google Inc is paying $12.5 billion to buy phone maker Motorola Mobility Holdings Inc, its biggest-ever deal, as protection against legal challenges from Apple Inc and other mobile rivals.
The Internet search leader is building up its patent portfolio -- seen as one of the weakest in the industry --- after it lost out to Apple, Microsoft Corp and others in a recent auction of bankrupt Nortel's assets.
But in buying Motorola, the developer of Android -- the leading smartphone software -- risks alienating the 38 other phone makers that depend on Android to run their smartphones, according to analysts.
Google CEO Larry Page sought on Monday to reassure investors this would not happen, and phone makers including Samsung Electronics Co officially said they welcomed the deal as it will also help their legal battles.