Does this include any of the H264 patents that Motorola hold? If so this makes this story even more interesting, the cases for WebM/VP8 would change substantially.
Google Buys Motorola For $12.5 Billion
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Re: Google Buys Motorola For $12.5 Billion
#82So, did Google just buy a lot of "bogus" patents to be used in their "open" platform now or what?
Re: Google Buys Motorola For $12.5 Billion
#83Earlier quoted context omitted.
I'd say this was probably plan b, for if their previous patent purchase didn't happen. The problem with Google, or any software company buying a hardware company is that generally the street values hardware at a lower multiple so this has the chance to pull down google's market cap. We'll see how the market reacts to this during today's trading.
> The problem with Google, or any software company buying a hardware company is that generally the street values hardware at a lower multiple so this has the chance to pull down google's market cap. I don't think I understand what you're saying here. Could you elaborate a little?
Software companies often have higher multiples attached to their earnings than hardware companies do. This is due to the fact that hardware companies usually have lower margins that software companies do.
If the street perceives Google to now be a hybrid hardware/software company then the street could lower the multiple that they use to value them.
Re: Google Buys Motorola For $12.5 Billion
#84It's fascinating to see the behemoths (Apple, Microsoft, Google) positioning themselves for the fight ahead. The importance of this fight cannot be understated. Microsoft won the last fight like this and they have dominated our desktops for 15 years (OK, maybe not all HN devotees) and pocketed gazillions. Apple are ahead right now (manufacturing handsets, selling software, etc), Google are second and Microsoft are la…
> Apple are ahead right now (manufacturing handsets, selling software, etc)
Uhh, haven't more Android handsets been sold per day than iOS handsets for like the last 6 months?
Re: Google Buys Motorola For $12.5 Billion
#85I'm surprised no one has mentioned this, but MY first thought was Google bought Motorola so they can directly defend Android against Apple's Samsung-style lawsuits (which are now including the Xoom).
Re: Google Buys Motorola For $12.5 Billion
#86I also wonder if this will affect Google's choice of launch partner for Ice Cream Sandwich (4.0). Current rumours have that either being Samsung or that there are multiple partners. It'd be too late to back down on a Samsung choice, but if there were multiple partners...
Re: Google Buys Motorola For $12.5 Billion
#87It's still all about ads for Google.
With the patent war being fought by Apple and Microsoft they had no choice but to arm themselves. Otherwise they would soon face a mobile space dominated by the other two mobile OS vendors due to license fees that would make Android unprofitable for hardware vendors.
Apple and Microsoft would then push Google ads out of the mobile space by demanding a large share of ad proceeds or by pushing apps instead of HTML5.
Re: Google Buys Motorola For $12.5 Billion
#88I wonder if Google will start giving away for free phones with ads, truly disrupting the market like they did with everything else.
Re: Google Buys Motorola For $12.5 Billion
#89Earlier quoted context omitted.
I'd say this was probably plan b, for if their previous patent purchase didn't happen. The problem with Google, or any software company buying a hardware company is that generally the street values hardware at a lower multiple so this has the chance to pull down google's market cap. We'll see how the market reacts to this during today's trading.
Was it plan B? Major purchases like this don't usually happen quickly. The Nortel and Novell stuff all went down in the last six months, and neither (separately or together) would have cost Google enough to make them back off an in-progress attempt to buy Motorola. This could have been part of a Google patent blitz from the start.
When you show up willing to pay a 63% premium, it doesn't take six months.
Re: Google Buys Motorola For $12.5 Billion
#90I'm surprised no one has mentioned this, but MY first thought was Google bought Motorola so they can directly defend Android against Apple's Samsung-style lawsuits (which are now including the Xoom).
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