There's much more to the proposed acquisition of Motorola Mobility Holdings by Google than meets the eye, especially as the deal appears to have been initiated only recently after some very worrying signs from Motorola, a vital Android partner.
It's worth noting that Motorola Mobility was only created at the beginning of the year after being spun off from Motorola (the other activities of Motorola being lumped together as Motorola Solutions), nearly three years after its most vocal investor Billionaire Carl Icahn single-handedly forced the company to separate the then money-losing mobile phone business from the more lucrative "Solutions" division.
Severing the Mobile division from the rest of the company may have been the sine-qua-non condition for a rapid sale of the company. Furthermore Gigaom reports that Microsoft may have been interested in acquiring Motorola Mobility (and its nearly 25,000 patents), something that could have altogether eliminated the Android threat.
Neither can we ignore the rumours back in March when Motorola Mobility's CEO, Sanjay Jha, hinted that the company might want to have its own OS, despite using Google's Android OS in all its smartphones, nor can we forget the same Jha citing the Nokia-Microsoft partnership as the kind of "hardware-software" consolidation that Motorola might consider, or alluding to a possible Windows Phone 7 from the company.
But there's more than that; Motorola already publicly admitted - last week actually - that it could collect IP royalties from other Android device manufacturers, something that would potentially have been even more devastating than the current legal tussles with Microsoft, Oracle and Apple.