Lenovo to buy Google's Motorola handset division

Post by cma » Thu, Jan 30, 2014, 12:50 AM UTC

absherwin wrote: post #68

mediaman wrote: post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

They shredded closer to a sixth of the initial price less whatever IP benefit they received. Motorola had ~$3B in cash when acquired. Google previously sold their set-top box unit for $2.35B and realized about $1.7B in tax benefits from previous losses. However since acquiring it has taken $1.038B in losses, which is $0.67B post-tax. There will be another write down for the lost goodwill less the value of the remaini…

Post by skizm » Thu, Jan 30, 2014, 1:09 AM UTC

eli wrote: post #143

skizm wrote: post #134

Better article: http://investor.google.com/releases/2014/0129.html Assuming that google keeps the majority of/important patents then they basically bought the patents for $4.74 billion. They sold the "set top" division for $2.35 billion and now they're selling the mobility division for $2.91 billion. They also kept about $3 billion in cash that Motorolla was holding when they bought them for $13 billion. That's not e…

Curious: why would a deal like that have tax incentives?

Post by specialist » Thu, Jan 30, 2014, 1:19 AM UTC

mediaman wrote: post #34

lotso wrote: post #13

Earlier quoted context omitted.

> It's also a big statement on Google's ability to succeed in the hardware market, where they've never seemed to be able to gain real success despite their attempts with notebooks and phones. And Google TV. Let's not forget that huge failure. "By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it." -Eric Schmidt

It makes me wonder how this will affect Google management's willingness to make additional attempts in hardware. For example, will they still push Google Glass? As you suggest, Google TV? Further out, they seem to be pursuing things like autonomous vehicles -- perhaps this could motivate them to limit their ambitions to the software/AI aspects of it.

Post by product50 » Thu, Jan 30, 2014, 1:33 AM UTC

absherwin wrote: post #68

mediaman wrote: post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…

They shredded closer to a sixth of the initial price less whatever IP benefit they received. Motorola had ~$3B in cash when acquired. Google previously sold their set-top box unit for $2.35B and realized about $1.7B in tax benefits from previous losses. However since acquiring it has taken $1.038B in losses, which is $0.67B post-tax. There will be another write down for the lost goodwill less the value of the remaini…

Post by qq66 » Thu, Jan 30, 2014, 1:45 AM UTC

mediaman wrote: post #7

Huge announcement if true, and if this accounts for the entirety of the Motorola purchase that Google made. That means that in less than two years, Google shredded 85% of the $13bn paid for Motorola. At the time, the high price paid was excused for the patents, because the business itself did not generate nearly enough earnings to justify the price. Now, if it is true that the patents are part of the deal (the articl…