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Comment by aaronbrethorst | Hacker News Reader

Motorola held out for a full acquisition at a premium far above the company’s actual value, and threatened to go after its sibling Android partners if Google didn’t acquiesce.

Say what you will about Gruber and his Apple fanboyism, this rings true to me. By and large, the article seems very astute.

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I have to agree, this was a very insightful piece if you ask me. Not rambling or scrambling to make sense of everything, which is how some of the other analysis reads on the topic.

Gruber took a few steps back, somehow saw the hole picture and described it tersely. Maybe one of Gruber's best.

Threatening to go after other Android partners makes little sense for Motorola. It's not something Motorola would do to get most profit from it. If Motorola has threatened Google something, it would be to sell to Microsoft. That will make much more sense.

I would bring up IP as a very important for differentiation (among Android vendors). We have a very large IP portfolio, and I think in the long term, as things settle down, you will see a meaningful difference in positions of many different Android players. Both, in terms of avoidance of royalties, as well as potentially being able to collect royalties. And that will make a big difference to people who have very strong IP positions.

http://www.unwiredview.com/2011/08/11/motorolas-sanjay-jha-o...

That doesn't mean the action make sense. My point is that it won't make sense for Motorola to do that, not whether they did or did not do it. Google can easily tell them that if they do that prematurely, Android ecosystem will fail, rocking the same boat they are in. Sensibly, you can't get much royalties from a failed platform, and Apple/Microsoft won't give Motorola any medals for going that path.

>Motorola held out for a full acquisition at a premium far above the company’s actual value,

According to http://news.ycombinator.com/item?id=2888292 the real purchase price is closer to $7B, not $12.5B as stated in the article, due to cash and deferred tax assets.

The Nortel patents went for $4.5 billion and this acquisition gives Google both a ton of patents as well as a company with physical assets that makes the Droid line of phones and the Xoom tablets. Not to mention, Google has $40B in cash or short term investments just laying around to be put to use.

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