Google PR is trying to establish this move as the purchase of defensive patents to protect against the "conspiracy" of lawsuits from Microsoft, Apple and Oracle, but it seems like that's really oversimplifying things.
1. Google could have simply bought the rights to litigate with Motorola's patents without buying the company outright. For some reason, Google spent a ton of money and bought a hardware manufacturer which has been circling the drain since people got bored of the RAZR.
2. It's not clear how effective Motorola's patents will be in protecting Android. Motorola is already embroiled in a legal battle with both Microsoft and Apple, and Oracle doesn't make cell phones at all, so these patents will be no help there.
3. This is the really juicy one. Motorola has been making threats about keeping itself in the black by going on a litigation rampage... against other Android vendors.
So it looks like the reason why Google is willing to buy Motorola outright for a 60% premium might actually be to protect Android from Motorola. Certainly, having a pile of patents which might come in handy against other mobile competitors won't hurt, but it looks to me like the management of Motorola knew they had Google over a barrel, so they took them for all they were worth.
It's a big risk for Google trying to be both a platform vendor and vertically integrated phone vendor. Eventually, they're going to have to choose between keeping their new hardware division, or keeping their other licensees. This is a big opportunity for Microsoft.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.
