Google (NASDAQ: GOOG) will be making its largest acquisition ever if it is successful in purchasing Motorola Mobility (NYSE: MMI) for $12.5 billion, and the deal has many implications.

Not only is Google getting an Android handset and tablet vendor--it also gets the $3 billion in cash that Motorola has on hand and a massive patent collection, as Avi Greengart, analyst with Current Analysis, pointed out.

Indeed, Motorola's patent trove is the main piece of the deal. In announcing the purchase, Google executives talked up the portfolio and how it will leverage Android's position against patent lawsuits. Google recently lost out to competitors Apple (NYSE: AAPL) and Research In Motion (NASDAQ: RIMM) that, in conjunction with Ericsson, won a load of patents from bankrupt Nortel Networks for $4.5 billion.

Apple, Microsoft (NASDAQ: MSFT) and others have been suing Android licensees for patent infringement.

One of the biggest question marks is what this acquisition means for Microsoft. Analysts say Microsoft could gain an upper hand, given the threat that Motorola now poses to other Android licensees. As Greengart noted, Microsoft is the only other vendor with a fully realized mobile OS and content ecosystem.

Microsoft has partnered with Nokia (though it doesn't own Nokia), which is still viewed in better light than the Google/Motorola combination. While some speculate Microsoft will now purchase Nokia, the software giant might instead want to cozy up with Google's Android licensees. It'll be interesting to watch this play out. - Lynnette