Google: Paying the price for maintaining Geek image

Here is an interesting write-up about Google:

In June 2011 Google bid for auction of over 6000 patents and patent applications held by Nortel.

In a hard-fought battle, Google bid confusing amounts like $1,902,160,540, $2,614,972,128 and $3.14159 billion - all mathematical constants (Brun's constant, Meissel-Mertens constant and Pi respectively). 

While Google may have retained its geek credibility, it lost the patents to a consortium made up of arch-competitors Apple, Microsoft and RIM among others who bid $4.5 billion. All while it had nearly $40 billion in cash on its balance sheet. 

"I have worked in the tech sector for over two decades. Microsoft and Apple have always been at each other's throats, so when they get into bed together you have to start wondering what's going on" said David Drummond, Google's legal head in a blog post after losing the auction. Alreadt the company with the fewest patients with which to defend against attacks, Google was forced to scramble after the loss. To compensate, it acquired 1000 patients from IBM the very next month.

Google acquired many more patents over the last two years but all of them are considered less critical, and hence less valuable, for mobile communication.

Article in Forbes magazine (August 2011)


More about Nortel patents deal here:
http://dealbook.nytimes.com/2011/07/01/apple-and-microsoft-beat-google-for-nortel-patents/

Update: Only days after this article was published Google acquired Motorola Mobility for $12.5 billion to make a strong entry in the handset market.(http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html)