Analysts Raise Concern over Google’s Forecast To Buy Motorola for $12.5 Billion

The Chief Executive of Nokia, Stephen Elop claimed that concerns over Google’s forecast to buy Motorola for $12.5 billion can be justified and said that the move toughened the grounds for Nokia's agreement with Microsoft.

"The very first reaction I had was very clearly the importance of the third ecosystem and the importance of the partnership that we announced on February 11, it is clearer than ever before”, added Elop. "If I happened to be someone who was an Android manufacturer or an operator, or anyone with a stake in that environment, I would be picking up my phone and calling certain executives at Google and say 'I see signs of danger ahead”.

On the other hand, a majority of analysts agreed that Motorola’s portfolio of 17,000 patents has attracted the Google for its deal and not its handset business. Its software that has gained rapid popularity, Android, is used by a number of phone makers including Motorola and required the deal compete in the escalating arms race over the intellectual property behind smartphones and tablet computers.

In addition, analysts believe that Nokia’s patents may worth more than its €15.5bn market capitalization whereas Microsoft appeared as a most likely buyer because of its existing alliance with Nokia.