Google might've lost out on the US$4.5 billion bid on Nortel's patents, but the company has gone out and got itself a consolation prize for a mere US$12.5 billion, a prize known as Motorola Mobility. For those sitting on shares in Motorola Mobility Holdings Inc, the official name for Motorola's phone division, this is fantastic news as the shares have jumped by over 55 percent, although Google's shares are actually down so far, albeit by a mere percent or so.

Google might've lost out on the US$4.5 billion bid on Nortel's patents, but the company has gone out and got itself a consolation prize for a mere US$12.5 billion, a prize known as Motorola Mobility. For those sitting on shares in Motorola Mobility Holdings Inc, the official name for Motorola's phone division, this is fantastic news as the shares have jumped by over 55 percent, although Google's shares are actually down so far, albeit by a mere percent or so.

The shareholders of both companies have voted in favour for acquisition, although it still needs to pass the scrutiny of the SEC and some other instances. It's an interesting move by Google, especially as the company still has several other major handset vendors that may or may not turn elsewhere for their device OS needs in the future, all depending on how Google handles things.

We should be quick to point out that Motorola Mobility will remain a separate entity from Google and it won't be part of the Google branded companies. However, we can't but wonder what benefits Motorola Mobile will see from this close relationship with Google and if Google wants to keep its other Android partners happy, it's going to have to make sure that Motorola Mobility doesn't get any special treatment, something that doesn't sound very likely.

On the other hand, there are only so many options when it comes to alternative smartphone operating systems that consumers would deem acceptable over Android. It's clear that both Microsoft and HP have an opportunity here and as far as Samsung goes, the company already has its own platform in the shape of Bada. It will be interesting to follow how things unfold, but at the moment HTC, LG, Samsung and Sony Ericsson are all still behind Android and have commented that Google's purchase of Motorola Mobility is a positive thing for Android in general.

One of the key reasons for Google to buy Motorola Mobility is the stack of patents the company has, as Motorola was one of the companies behind the very first cell phones and much of that technology is what today's handsets are building upon. It's also important to remember that Motorola Mobility makes a range of other products such as optical networking solutions for digital cable TV and internet, something else which ties in nicely with Google's overall businesses. It's no doubt that this will have some interesting developments for consumers as well and if nothing else, we'll hopefully be seeing better support for Motorola's Android handsets when it comes to version upgrades of Android.

Source: Google blog