Motorola Mobility Gets Lift from Patent Win Against Apple & Announces Android-based TV Controller

Motorola Mobility (NYSE:MMI) has won a patent infringement case against Apple (NASDAQ:AAPL) for selling some devices in Germany. ^[1] However, according to the report, the ruling should not impact Apple’s sales in Germany as the company sells all its product there through a local subsidiary, which was not covered by the injunction. Google (NASDAQ:GOOG) is in the process of acquiring MMI for a valuation of $12.5 billion, which is a whopping premium of 60%. Until this acquisition is completed, Motorola Mobility will continue to function as an independent company.

See our complete analysis for Motorola Mobility stock here

In other news, Motorola Mobility could possibly be working on a tablet computer that also doubles as a Android-based TV controller named “Corvair”. ^[2] Although the report does not give the complete details about the device, the device could be a big shot in the arm for the TV efforts of Google through its acquisition of Motorola Mobility.

Although the acquisition was done with a point of view of getting hold of mobile patents to ward off lawsuits from competitors, it will also help Google get entry into set-top box market and become part of the cable industry’s distribution chain. The device could possibly be a help to Google’s efforts to enter the living room. Set-top box or the digital TV boxes accounts for around 12% of our $21 price estimate for Motorola Mobility stock.

Our pre-deal price estimate of $21 for Motorola Mobility stock is about 45% below market price.

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1. Motorola wins preliminary ban vs Apple in Germany, Reuters, November 7th, 2011 [↩]
2. Exclusive: Motorola Corvair Android-based TV controller leaks out, The Verge, November 5th, 2011 [↩]