Google selling Motorola to Lenovo for $3 billion!?

[jpiniero]

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.

It was buy Motorola or shut down the Android project really because they needed the patents that badly.

Motorola even under Google was a money loser, so even with the tax benefits they are probably going to eat a couple B in total on this.

 

[Mopetar]

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.

There's nothing stopping any other company from implementing those features.

 

[makken]

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.

Oh right.

Looks like the losses added up to around 1.8b (probably a tad higher as Google hasn't reported q4 2013 yet) say 2b total.

Still, 3.05b for those patents is a good deal, considering they were bidding 4+b for the Nortel patents.

 

[Graze]

http://www.bloomberg.com/news/2014-...-to-buy-google-handset-unit-for-about-3b.html

Google said in a statement today and according to filings. Google will retain a majority of Motorola Mobility’s patent portfolio, with Lenovo receiving a license to the intellectual property.

Just like I thought

 

[MichaelBarg]

Oh right.

Looks like the losses added up to around 1.8b (probably a tad higher as Google hasn't reported q4 2013 yet) say 2b total.

Still, 3.05b for those patents is a good deal, considering they were bidding 4+b for the Nortel patents.

The wildcard is whether Lenovo is getting any cash with Motorola. I'd assume they get at least enough working capital to run the business, maybe $100-200m. Beyond that though we don't know, it could be a big chunk of change or nothing.

edit:
Here's how dealbook runs the numbers:
http://dealbook.nytimes.com/2014/01/29/did-google-really-lose-on-its-original-motorola-deal/

That said, looking at how the suit against Microsoft went I'm fairly dubious about comparing the value of the Nortel patents to Motorola ones. It's hard to say what the Nortel patents will turn out to be worth, but the Motorola ones seem to be worth very little.

 

[magomago]

There's nothing stopping any other company from implementing those features.

Sure that takes time though. Having great implementation can be worth something in some respects.

 

[zerogear]

bloatware ahoy.

 

[gus6464]

Well I guess 4.4 will be the last Android version on my Moto X. Lenovo makes such trash tablets and I have no hope of them making anything good.

 

[gorcorps]

Good

I haven't been less interested in Motorola than I am right now with them under Google's belt. Was nothing but a patent grab

 

[ImDonly1]

Seems kind of soon?
Google just barely started to turn motorola around. I would have preferred if they kept motorola.

 

[thedosbox]

Disappointed that Moto won't get the chance to continue re-establishing itself under Google's umbrella, but hope the Moto team get to continue what they're doing.

 

[TuxDave]

Poor Motorola. From undesirable to everyone's underdog favorite back to undesirable.

 

[jacktesterson]

http://m.techradar.com/news/phone-a...as-sold-motorola-mobility-to-lenovo-1219956an

I literally this week was debating between the Moto X and Nexus 5. Glad I went Nexus 5 as updates was a big reason to consider the Moto X

 

[SnuggleTheBear]

Oh right.

Looks like the losses added up to around 1.8b (probably a tad higher as Google hasn't reported q4 2013 yet) say 2b total.

Still, 3.05b for those patents is a good deal, considering they were bidding 4+b for the Nortel patents.

Are there patents really worth that much? I remember reading articles specifying Google took quite a hit after the FRAND patents were devalued from the court's decision.

 

[destrekor]

Hopefully Lenovo is smart and doesn't tinker with the Motorola formula. Google came in and really pushed Moto into a very good position, and I'm sure they have a couple products in the pipeline that will do them even more favors.

I don't see Moto-brand hardware having anything other than the current approach to software - as in, Android Plus Awesome, rather than excessive bloat or significant retooling.

 

[Ryan]

Are there patents really worth that much? I remember reading articles specifying Google took quite a hit after the FRAND patents were devalued from the court's decision.

There's a chance they are also generating revenue due to royalties, right?

 

[CrystalBay]

Hmm , wonder who'll be making the next Nexuses .

 

[SnuggleTheBear]

There's a chance they are also generating revenue due to royalties, right?

Yes, they could still generate revenue from royalties from other companies; however, that revenue is so tiny to what they would expect. The court case they related to this they were seeking $4 billion, but only got $1.7 million. From what I read they lost several other cases. Here is a new article.

http://recode.net/2014/01/29/buy-high-sell-low-googles-losing-bet-on-motorola/

Basically FRAND patents are related to setting standards and require a reasonable licensing fee.

 

[Joe1987]

Every single patent infringement case involving Moto's patents were lost, and Google looked stupid as a result, it was damaging their brand.

I don't know what this does to the existing Moto phones, but I think Lenovo will do a damn good job making phones.

I think Samsung and Google have agreed to conquer the smartphone world, and this is part of the Faustian deal.

Patent sharing between Google and Samsung, the pending death of nexus devices, an agreement over the interface Samsung will utilize, putting Tizen on a back burner, and the sale of Motorola. (Plus other agreements we don't and may never hear about)

The nexus line never generated much $, and it confused the manufacturers, as well as the purchase of Motorola by Google.

We're witnessing the birth of this generation's version of MS/Intel dominance of the PC market, Google & Samsung will essentially be the mobile market.

 

[BladeVenom]

Are there patents really worth that much? I remember reading articles specifying Google took quite a hit after the FRAND patents were devalued from the court's decision.

Google listed the value of Motorola's patents and technology at $5.5 billion. http://www.sec.gov/Archives/edgar/data/1288776/000119312512440217/d400524d10q.htm

 

[SnuggleTheBear]

Google listed the value of Motorola's patents and technology at $5.5 billion. http://www.sec.gov/Archives/edgar/data/1288776/000119312512440217/d400524d10q.htm

I was referring to the current value of the patents and not what it was valued at the time of the acquisition.

 

[Pneumothorax]

Considering how lenovo ruined Thinkpads, I don't have much faith in this deal...

 

[desura]

Considering how lenovo ruined Thinkpads, I don't have much faith in this deal...

?

Eh, this does kinda make sense. Motorola is like the "thinkpad" of cellphones.

btw, Lenovo seems to have kept thinkpads okay...and some changes were inevitable...Dell doesn't make the same laptop as it used to either.

 

[SpongeBob]

I really hope they don't kill off the maxx line...

 

[Ryan]

I really hope they don't kill off the maxx line...

I wish they'd expand it to all models :O