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Google Aims InterDigital Acquisition, Hires Financial Advisers

by Ravi Mandalia, 21 Jul, 2011 News

Search engine giant Google is looking to acquire mobile chip technology maker InterDigital, after failing to purchase Novell’s massive patent portfolio.

Google had made a $900 million offer to acquire Novell’s patent portfolio, but was armed out of doing so by a consortium of companies led by Microsoft and Apple, which acquired it for $4.5 billion.

Google’s Android platform is being pelted with lawsuits by competitors looking to stall its growth. The open operating system already leads the US Smartphone market. Google’s patent portfolio is comparatively weaker than what its rivals have.

InterDigital has hired financial advisers, Evercore Partners Inc. and Barclays Capital, to evaluate its current business position, including the possibility of selling the business to the highest bidder. Now, The Wall Street Journal is reporting that Google is in talks with InterDigital for a possible acquisition.

The company is said to have a large portfolio of 8,000 patents related to mobile technology and has several pending patents as well. An acquisition could make up for losing out on Novell’s patents and protect Google from the lawsuits being hurled at Android.

InterDigital, which has a market value of about $3.1 billion, saw its shares rise by 29 percent to $68.67 thanks to the takeover rumours.

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