Google selling Motorola to Lenovo for $3 billion!?

[s44]

http://www.droid-life.com/2014/01/29/report-lenovo-is-buying-motorola-from-google-for-3-billion/

Wow. Wow.

I wonder how this works with the patents, including the gigantic patent deal with Samsung last week.

 

[Red Storm]

Damn, Lenovo buying up everybody.

 

[poofyhairguy]

So Google keeps $10 billion in patents? Can patents even be worth that much when we examine the Samsung rulings? Seems cheaper just to violate and pay.

 

[Red Storm]

I think Google is just accepting that they're selling for a major loss, according the update ~10,000 patents are part of the deal.

 

[midwestfisherman]

Well hell, I wonder what this will mean for the Moto G and X?

 

[foghorn67]

Fuck/

 

[crashtestdummy]

That's really interesting... It means that Google doesn't have any intent to stay in the device business. I suppose this makes sense (Google is an internet marketing company, not a hardware developer), but I really saw Moto as having a positive effect on driving down device costs.

 

[foghorn67]

I'm really liking having a device without bloat and close to Google's reference, but also tons of useful features. Damn.

 

[foghorn67]

I don't mind made in China, but I draw the line at Chinese owned.

 

[NikolaeVarius]

http://www.androidpolice.com/2014/0...bility-to-lenovo-say-reuters-and-china-daily/

Confirmed.

 

[Sheep]

I'm pretty sure I speak for most everybody when I say "WTF??". Certainly didn't see that one coming.

I hope Lenovo stays the course with the progress Motorola's made with the Moto X and G. Yeah they're not cutting edge but devices don't sell to the masses by virtue of having the best hardware or running the highest benchmarks.

 

[crashtestdummy]

I'm really liking having a device without bloat and close to Google's reference, but also tons of useful features. Damn.

I don't mind made in China, but I draw the line at Chinese owned.

To a limited extent (i.e. minus the love of Google services), being a Chinese company may actually help it. They will have a much better idea of how to cater to developing market, where customers aren't willing to pay a premium for a bloated device.

 

[Graze]

I think Google is just accepting that they're selling for a major loss, according the update ~10,000 patents are part of the deal.

Yeah. I am betting they are not selling those patents. They would most likely license them to Lenovo

 

[foghorn67]

Things that I fear loosing:
-Quick updates
-Google minimalist philosophy
-Regional Moto Maker factories in USA, Brazil, etc.
-Innovation, seriously...active display is the best idea in mobile products in the past couple of years.
-Daniel Woodside, CEO of Mobile Mobility,he was cool.

 

[makken]

So let's see.

Google originally brought motorola for 12.5b.
Motorola had 3b in cash, so they immediately got that back.
They sold the set up box division for 2.35b.
They're rumored to be selling the handset division for 3b

Assuming the patents aren't part of the deal, Google effectively paid 4.15b for them.

Motorola also came with tax benefits. The number being thrown around was 700m per year through 2019, and a 1b immediate benefit. Assuming they claimed 3 years worth of that, that's an additional 3.1b off

So the net price Google paid for those patents was 1.05b.

I don't think anyone is laughing at Google spending 12.5b now...

 

[Jodell88]

They bought Motorola for the patents. I thought everyone knew this?

 

[foghorn67]

So let's see.

Google originally brought motorola for 12.5b.
Motorola had 3b in cash, so they immediately got that back.
They sold the set up box division for 2.35b.
They're rumored to be selling the handset division for 3b

Assuming the patents aren't part of the deal, Google effectively paid 4.15b for them.

Motorola also came with tax benefits. The number being thrown around was 700m per year through 2019, and a 1b immediate benefit. Assuming they claimed 3 years worth of that, that's an additional 3.1b off

So the net price Google paid for those patents was 1.05b.

I don't think anyone is laughing at Google spending 12.5b now...

Did they KEEP the patents?

 

[poofyhairguy]

I think Google is just accepting that they're selling for a major loss, according the update ~10,000 patents are part of the deal.

Google doesn't need all of the Moto patents. Most are probably part of some sort of license pool so at best they bring in minor revenue.

Google needs the handful of patents that could nail Apple, MS or Samsung to a wall if any of them wanted to play hardball in or out of the courts.

 

[bearxor]

I can't say that I saw this one coming...

 

[cliftonite]

Was hoping for a Moto phablet

 

[cliftonite]

I think Google is just accepting that they're selling for a major loss, according the update ~10,000 patents are part of the deal.

"...Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures."

http://investor.google.com/releases/2014/0129.html

 

[Mopetar]

I'm really liking having a device without bloat and close to Google's reference, but also tons of useful features. Damn.

Don't the Nexus devices generally fit this definition? They're usually the ones that have the newest hardware features implemented as well as offering a vanilla Android experience.

So the net price Google paid for those patents was 1.05b.

I don't think anyone is laughing at Google spending 12.5b now...

You forgot to count the operation expenses as the Motorola division never turned a profit and Google still had to pay salaries and other costs. I'm not sure how much this works out to in total, but it's probably around a billion.

They bought Motorola for the patents. I thought everyone knew this?

That was part of it. The other part was that if they didn't, Motorola was going to start suing everyone with their patents instead of just Nokia and Apple.

 

[Ravynmagi]

Well crap, I'm disappointed. Motorola was just getting good and doing good stuff with the Moto X and Moto G. I don't really see that lasting once Lenovo's culture truly takes over (could take two or three years).

 

[poofyhairguy]

I can't say that I saw this one coming...

We should have. Google for a while have been trying to tell us:

"The actual phone hardware will soon just be a commodity. They days of high margin flagship phones are numbered."

Makes sense when you look at it that way.

 

[foghorn67]

Don't the Nexus devices generally fit this definition? They're usually the ones that have the newest hardware features implemented as well as offering a vanilla Android experience.

I said with features. Active Display, gestures, etc. are awesome in daily use.
I can't picture a world without always on voice commands and active display. Everything else seems clunky and old.