Google Will Invest in Motorola and Won’t Sell it

Last August, Google made the largest acquisition in its 14-year history: it bought Motorola for $12.5 billion. At the time, analysts believed that Motorola's set of 17,000 patents was the main reason for the purchase.

Aside from the patent wealth though, Motorola also has over 20,000 employees in its 92 major factories spread across 97 countries. Moreover, Motorola's cumulative losses in the past few years have been around $5.3 billion.

Now, what is Google going to do with all that? Apparently, invest some more. According to a recent report from The Wall Street Journal, Google is going to put more money on the line to boost Motorola's performance.

"People close to Google say it plans to make substantial investment in Libertyville, Ill.-based Motorola. (...) The goal, these people say, is to build truly innovative devices, which the company realizes will take both money and talent," writes Dennis K. Berman who investigated the matter.

Larry Page, Google Chief Executive, declared in a recent blog post that he is "excited about the opportunities" but without giving any additional details. Pierre Ferragu, Bernstein analyst, has a completely different prediction on this matter.

He believes that Google will sell Motorola after securing its patents.

source: WSJ