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Google sells Motorola to Lenovo for $2.91 billion

     
10:43 pm on Jan 29, 2014 (gmt 0)

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http://www.theverge.com/2014/1/29/5358620/lenovo-reportedly-buying-motorola-mobility-from-google [theverge.com]

Google sells Motorola to Lenovo for $2.91 billion

Google is selling Motorola Mobility to Lenovo, giving the Chinese smartphone manufacturer a major presence in the US market. Lenovo will buy Motorola for $2.91 billion in a mixture of cash and stock. Google will retain ownership of the vast majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. Lenovo will pay Google $660 million in cash, $750 million in stock, with the remaining $1.5 billion paid out over the next three years.
1:30 am on Jan 30, 2014 (gmt 0)

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Google, of course, has never been “all-in,” when it comes to smartphones. Instead it has successfully made phones with numerous industry partners over the years. In this light, the decision to cut its losses and redirect focus to Android makes some sense. For its own part, Lenovo also has had a decent track record of strategic purchases. It 2005, it bought IBM’s personal computer business for $1.25 billion, making it the third largest PC maker in the world. Just last year it overtook HP as the largest.

We’ll see if it can do the same thing with Motorola and smartphones.

[wired.com...]
9:15 am on Jan 30, 2014 (gmt 0)

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Google bought the business for $12.5 Billion and completed the deal in 2012. Google Completes Its $12.5bn Acquisition Of Motorola Mobility [webmasterworld.com]

What's interesting is that Google is holding onto the patents, so it's looking to the long game for Android.
11:08 am on Jan 30, 2014 (gmt 0)

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Are the patents really worth that much? All they seem to produce is litigation.
11:41 am on Jan 30, 2014 (gmt 0)

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It think that's been one of the problems; the patents aren't worth as much as envisioned.
11:49 am on Jan 30, 2014 (gmt 0)

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I can't help feeling that without search this company would be in the mire. They are like rich kids running wild with platinum credit cards in a toy shop. Just my innocent opinion of course.
12:40 pm on Jan 30, 2014 (gmt 0)

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It think that's been one of the problems; the patents aren't worth as much as envisioned.


They are gaining lots of valuable knowledge with all the patent lawsuits against them that they are losing, with that information they should be able to extract more value out of the patents they are retaining in this deal. /end snark/
3:46 pm on Jan 30, 2014 (gmt 0)

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I don't think Google ever intended to be in the hardware business.

I think the whole Motorola deal was to line their pockets with patents to battle Apple and Microsoft, nothing more.

In the big scheme of things, do you think Motorola would've just sold Google all their patents?

Hell no.

But Motorola would sell them the division that held all those patents therefore making Google buy that division in order to part it out later. Hold it for a while, build the equity with a new kick ass product, then resell what they don't want anymore for a premium price and still come out smelling like a rose.

Not only are they in the business of partnering to build new Android products, they're now in the business of building new Android partners!

I'm thinking this also might be a move to keep the DOJ off their backs with the usual anti-trust rant. Plus, more importantly they were in direct competition with all the other Android hardware partners making MS Win 8 phones look more attractive. All troublesome situations easily solved and the stockholders are probably dancing in the (wall) streets at this news.

FYI, Google holding lots of phone patents is good for Google's partners too as Google can potentially come to the rescue with leverage if the Android franchise in general suddenly gets jeopardized.
9:09 pm on Jan 30, 2014 (gmt 0)

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Another look, from the tax angle, that show G ended up making a few Billion off the deal...

So just how much has Google lost on buying and selling Motorola Mobility? $9bn - as The Telegraph seems to think? $7bn as simple arithmetic would seem to indicate? Or how about a very decent indeed profit as the vagaries of tax law might indicate - with that tasty patent portfolio thrown in for free?

[theregister.co.uk...]
11:23 pm on Jan 30, 2014 (gmt 0)

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They sold off another part of Motorola almost immediately after buying for just over $2billion, so they made at least $5billion on sales, get to keep the patents, and I am sure they'll work out the rest in taxes.
So, when the facts come out, Google knew exactly what it was doing.
 

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