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Google Buys Motorola For $12.5 Billion

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Re: Google Buys Motorola For $12.5 Billion

#91

Post by nknight »

ordinary wrote: post #79
chollida1 wrote: post #20

Earlier 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?

Basically the profit margin on hardware is lower than on software, or at least that's the view of Wall Street ("the street"). Thus Google has spent a big chunk of cash on a business with an inherently lower profit potential than the rest of its business, so their stock value (which has only a tenuous relationship with the hard value of a company's assets) may decline.

I doubt it's going to make that much difference, though. Google hasn't actually directed money away from "software", they've spent part of their $40 billion reserve that wasn't doing anything useful on a hardware company designed to strengthen Google's position is a market it's already sort-of in.

Re: Google Buys Motorola For $12.5 Billion

#92

Post by cincinnatus »

Jabbles wrote: post #29

Keeping Android open whilst treating their own phone manufacturing fairly will be a big challenge for Google. I hope they manage it. If done correctly the result should be a improvement in Android for all manufacturers, as the internal demands of Motorola will want to be heard, but cannot be prioritised. I am still puzzled as to how Skype cost $8billion. FYI Motorola Mobility had 24,500 patents when it was launched.…

If they have any sense they are already negotiating the sale of the physical business on to someone else. Keep the patent portfolio and recuop $6 billion of the initial outlay.

Also, "open" in name only.

Re: Google Buys Motorola For $12.5 Billion

#94

Post by presty »

Just speculating:

Could this be a genius move?

I don't know how good MM's patent portfolio is but not only they get lots of ammo for the patent war, they also get their own phone manufacturer.

And MM seems to in more than just phones, could they lead the way for the future of Android, namely Android@Home and Android Open Accessory?

Re: Google Buys Motorola For $12.5 Billion

#95

Post by blinkingled »

This is obviously great news for both Google and Motorola. I am glad they did not let the not buying Sun mistake repeat.

I have no idea what Sprint is worth but Google buying or investing in Sprint might take this to yet another level! And Larry had shown he isn't shy of adventures.

Still remains to be seen, how this impacts other manufacturers' support of Android. Could be WP7's gain. EDIT: http://www.google.com/press/motorola/quotes/ - Many including Sony Ericsson, LG and HTC have responded favorably.

Re: Google Buys Motorola For $12.5 Billion

#96

Post by darklajid »

bergie wrote: post #68
haasted wrote: post #26

This is probably going to make some of the other handset manufacturers (HTC, Sony-Ericsson, etc) complain about Motorola having an unfair advantage when it comes to implementing Android. Wonder if any of them are about to regret basing their smartphone offerings on Android? The move ought to strengthen the competition among the handsets, though, as Google can now ship their "dream-version" of an Android-phone.

Yep, this might be good news for the other "licensable" smartphone/tablet operating systems, which include WP7, webOS and MeeGo. Samsung already has Bada, which may have ambitions to become a bit more of a proper smartphone operating system. But there is a bunch of manufacturers that may have to switch from Android because of this deal.

Isn't Samsung talking to HP about WebOS for a while now?

And - are there reasons to believe that Bada is not dead/completely irrelevant by now?

Re: Google Buys Motorola For $12.5 Billion

#97

Post by toddmorey »

Funny how I've been anticipating Apple expanding into Google's search, services, and map space, but I certainly never thought of Google getting into hardware. I think it shows just how different the modern consumer space is from the last decade of computing. Unless you believe this is entirely about patents, Google has identified a need to give the Android ecosystem at least one device that's been holistically designed end-to-end.

Re: Google Buys Motorola For $12.5 Billion

#100

Post by BvS »

latch wrote: post #4

63% premium...insanity. This is all about patents, isn't it? Instead of spending $4billion for patents, spend 3x as much, get a huge portfolio (I don't know how large, but it's supposedly quite large)..and a part of a company as well.

6 month ago Motorola Mobility traded around 36$/share. Now Google is paying 40$/share.
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