Google Fails To Acquire Nortel Patents

Google lost out to a consortium on its bid to acquire an estimated 6,000 patents from Nortel, a bankrupt telecom-equipment manufacturer. Google bid $900 million for the patents however the consortium which included big companies such as Apple and Research In Motion made a $4.5 billion cash bid making their offer five times as much as that of Google. A lot of big companies became interested in acquiring the patents after they learned that it was up for sale. These patents include technologies related to 4G wireless systems, semiconductors and networking. Most of the patents relate to social networking, telecommunications and Internet search making it very attractive to own. A representative from Nortel said that the patents cost them $40 billion in investments in a span of 15 years. This was achieved through the company's own development as well as through acquisitions. Google was the first company to signify its interest in getting the patents since it planned to use it in its expansion of additional services. Kent Walker, the senior VP of Google had this to say regarding the outcome "This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition.”

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