What Google Sees in Motorola, and Beyond - Barron's

Breathless media reports following Google's $12.5 billion plan to buy Motorola Mobility frame the deal as open warfare with Apple. After all, the search giant will start manufacturing smartphones that run on its Android platform, going head-to-head with iPhones and iPads that use Apple's operating system. Who will win?

Google shares (ticker: GOOG) took the first hit, falling 4.4% within two days as investors tallied the new risks that it is incurring. Google will pay $40 a share and a 63% premium for Motorola Mobility (MMI) which comes with 17,000 patents—and has another 7,500 pending—that should advance Google's wireless ambitions. ...