Lenovo to buy Google's Motorola handset division • Hacker News Board

Re: Lenovo to buy Google's Motorola handset division

#201

Post by unavoidable » Thu, Jan 30, 2014, 4:17 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?

Motorola was bleeding money when Google purchased them. Google can deduct the operating losses from their profits to reduce their tax burden.

In addition, Motorola likely has many depreciating capital assets, and when the loss was booked by the sale, they can also write those off from their profits. A deal like this will have tons of tax lawyers going through them to maximize their benefits.

Re: Lenovo to buy Google's Motorola handset division

#202

Post by ricardobeat » Thu, Jan 30, 2014, 4:55 AM UTC

Pxtl wrote: post #193

I know this is a fantasy at best, but I keep fantasizing they're doing this so they can have the cash liquid... to buy Nintendo. Or Sony. I like Google's attitude towards hardware and I want them in the gaming industry.

So we can finally get all the AAA titles for free and covered in ads!

Re: Lenovo to buy Google's Motorola handset division

#203

Post by clarky07 » Thu, Jan 30, 2014, 5:19 AM UTC

adventured wrote: post #83

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

Instead, by the Summer of 2016, the majority of living rooms will be using Chromecast or something similar running Android. Android will acquire a monopoly share in smart TV, exactly like it did in smart phones and tablets. In fact, the game is already over, the competition just doesn't realize it yet.

perhaps, and Google still won't make a dime on it. incredible really.

Re: Lenovo to buy Google's Motorola handset division

#204

Post by clarky07 » Thu, Jan 30, 2014, 5:31 AM UTC

jerf wrote: post #197

mediaman wrote: post #75

Earlier quoted context omitted.

I know Google is trying to break out of their traditional business, but it seems like they've been trying to do that for years and nearly all their revenue is still ads. Just because very smart entrepreneurs are able to capitalize on an opportunity (search) and turn it into one of the world's largest companies, doesn't mean they can arbitrarily do it again.

Has any company the size of Google ever successfully pulled of this sort of diversification? (Honest question, there may well be answers I'm not thinking of. But I do mean very large companies, I know smaller ones diversify all the time successfully (and unsuccessfully).) For context, you think about a company like Microsoft or Google "diversifying", and, you know, for them it's not enough to "merely" build a $250 mi…

Um, Apple? Microsoft gets a lot of flack but frankly it has done pretty well. It makes a lot of money in several different divisions outside of windows and office.

Re: Lenovo to buy Google's Motorola handset division

#205

Post by justin66 » Thu, Jan 30, 2014, 5:31 AM UTC

It's a tangent but I'm a little disappointed by this latest executive-level assault on the language, from Larry Page:

> So until then, it’s business as usual. I’m phenomenally impressed with everything the Motorola team has achieved and confident that with Lenovo as a partner, Motorola will build more and more great products for people everywhere.

http://googleblog.blogspot.com/2014/01/lenovo-to-acquire-mot...

"Partner." Yeah...

Re: Lenovo to buy Google's Motorola handset division

#206

Post by justin66 » Thu, Jan 30, 2014, 5:39 AM UTC

jerf wrote: post #197

mediaman wrote: post #75

Earlier quoted context omitted.

I know Google is trying to break out of their traditional business, but it seems like they've been trying to do that for years and nearly all their revenue is still ads. Just because very smart entrepreneurs are able to capitalize on an opportunity (search) and turn it into one of the world's largest companies, doesn't mean they can arbitrarily do it again.

Has any company the size of Google ever successfully pulled of this sort of diversification? (Honest question, there may well be answers I'm not thinking of. But I do mean very large companies, I know smaller ones diversify all the time successfully (and unsuccessfully).) For context, you think about a company like Microsoft or Google "diversifying", and, you know, for them it's not enough to "merely" build a $250 mi…

> Has any company the size of Google ever successfully pulled of this sort of diversification?

How many companies the size of Google are NOT heavily diversified? Think GE, 3M, etc.

Re: Lenovo to buy Google's Motorola handset division

#207

Post by nostrademons » Thu, Jan 30, 2014, 5:39 AM UTC

jerf wrote: post #197

mediaman wrote: post #75

Earlier quoted context omitted.

I know Google is trying to break out of their traditional business, but it seems like they've been trying to do that for years and nearly all their revenue is still ads. Just because very smart entrepreneurs are able to capitalize on an opportunity (search) and turn it into one of the world's largest companies, doesn't mean they can arbitrarily do it again.

Has any company the size of Google ever successfully pulled of this sort of diversification? (Honest question, there may well be answers I'm not thinking of. But I do mean very large companies, I know smaller ones diversify all the time successfully (and unsuccessfully).) For context, you think about a company like Microsoft or Google "diversifying", and, you know, for them it's not enough to "merely" build a $250 mi…

Intel did something even more drastic: they shuttered the division that was making 90% of the companies revenues (memory chips) and completely pivoted to a new business (microprocessors).

Re: Lenovo to buy Google's Motorola handset division

#208

Post by kenesom1 » Thu, Jan 30, 2014, 5:41 AM UTC

piyush_soni wrote: post #115

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…

Seems surprising that they have to sell the whole Motorola division for less than they bought this little company Nest for.

Nest is worth every penny.

As for why Google specifically acquired them? Possibly because a general partner at KPCB (Nest's biggest investor and one of Google's early investors) also holds a seat on Google's board. Nest was one of Google Ventures largest investments and Google Ventures holds a seat on Nest's board. There's nothing like having the seller also be the one involved in the buying decision.

Nest makes great products and has an awesome team. I think they're worth more than what Google paid.

Re: Lenovo to buy Google's Motorola handset division

#209

Post by [deleted] » Thu, Jan 30, 2014, 5:44 AM UTC

jerf wrote: post #197

mediaman wrote: post #75

Earlier quoted context omitted.

I know Google is trying to break out of their traditional business, but it seems like they've been trying to do that for years and nearly all their revenue is still ads. Just because very smart entrepreneurs are able to capitalize on an opportunity (search) and turn it into one of the world's largest companies, doesn't mean they can arbitrarily do it again.

Has any company the size of Google ever successfully pulled of this sort of diversification? (Honest question, there may well be answers I'm not thinking of. But I do mean very large companies, I know smaller ones diversify all the time successfully (and unsuccessfully).) For context, you think about a company like Microsoft or Google "diversifying", and, you know, for them it's not enough to "merely" build a $250 mi…

[deleted]

Re: Lenovo to buy Google's Motorola handset division

#210

Post by discodave » Thu, Jan 30, 2014, 5:59 AM UTC

crucifiction wrote: post #198

jerf wrote: post #197

Earlier quoted context omitted.

Has any company the size of Google ever successfully pulled of this sort of diversification? (Honest question, there may well be answers I'm not thinking of. But I do mean very large companies, I know smaller ones diversify all the time successfully (and unsuccessfully).) For context, you think about a company like Microsoft or Google "diversifying", and, you know, for them it's not enough to "merely" build a $250 mi…

Amazon has done it a couple of times (Kindle, AWS).

Those two things are still a tiny fraction of revenue from the main retail store.