Google Breaks Down Why it Bought Motorola -- And Downplays Patents
July 25, 2012 2:39 PM
comment(s) - last by
Google is promoting synergy (like a boss).
Surprisingly, Google says that cash and "goodwill" were also big drivers
Google Inc. (
surprised the tech world last year
with its decision to scoop up struggling veteran devicemaker Motorola Mobility, Inc. -- one of the "big three" of the Android world. Some figured that Motorola's "war chest" of over 17,000 patents amounted to nearly the entire $12.5B USD valuation Google made in its successful purchase bid.
Traditionally, Google did not look to patent its software innovation at the same pace as rivals Apple, Inc. (
from Oracle Corp. (
) directly targeting Google and with Apple
turning up the lawsuit pressure
on OEMs, many felt Google needed to buy the patents to defend itself and its partners.
regulatory filings Google says the patents represented less than half the valuation.
Google's breakdown of Motorola's worth is as follows:
For those curious what exactly Google means by "goodwill", the company elaborates slightly that it is "primarily attributed to the synergies expected to arise after the acquisition."
However, Google has left just about everyone in the dark as to exactly what those "synergies" might be. During its earnings call, it did not discuss its long-term strategy or plan for Motorola.
completed the acquisition
in May, after Chinese regulators finally stopped dragging their heels on approval. U.S. and European antitrust regulators approved the acquisition
One thing is for sure; whatever Google's secret "synergies" may be, they have yet to take hold. Motorola Mobility made $1.25B USD in revenue in the second calendar quarter, but lost $233M USD, once operating expenses were taken into account. Google still managed to
earn $2.79B USD
, though, despite that hardship.
This article is over a month old, voting and posting comments is disabled
isn't it straight forward?
7/25/2012 5:13:51 PM
Motorola mobility only does two thing: make handsets and tablets. So isn't the obvious answer that Goog is going to make their own Handsets and tablets? They were already going in this direction with the Nexus devices. I think that google, and now even microsoft, agree with Apple that tight integration of software and hardware is the only way to make really refined products.
RE: isn't it straight forward?
7/25/2012 5:19:43 PM
I agree. They are all going to be making their own devices. Control the quality, control the updates.
Apple got that part right (actually, they got more than that right). I would LOVE to get a Nexus from Motorola. I hope I get to see some synergy soon.
It is an exciting tech time, with Microsoft deploying Win 8 and making devices, to Google/Motorola, and Apple trying to stay at the top.
RE: isn't it straight forward?
7/26/2012 7:33:47 AM
I'd say so. It's a good move - am getting sick of manufacturer skins on Android, and the Nexus 7 (even though its made by Asus) has rock solid user experience from what I've read.
RE: isn't it straight forward?
7/30/2012 9:45:42 AM
You should do your homework, they don't just make phones and tablets. Motorola Mobility includes the cable television business, formerly General Instrument Corp. which invented digital cable telvision and still dominates that market. The cell phone business dragged down their earnings, but there's a Motorola settop box in 10s of millions of American homes (and internationally too). Google is too smart to ignore that especially when they're rolling out GoogleTV (2nd try) and this time they have the engineering team who rolled out digital cable to most of America the first time. Granted, they might still sell that business off to someone else, but it remains a moneymaker even if it reverts back to General Instrument.. owned by no one.
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
Google Q2 2012 Earnings Rise 11 Percent, Deals with Falling Ad Prices/Motorola Issues
July 20, 2012, 10:45 AM
Apple Forced by UK to Print Public Apologies to Samsung for Design Theft Accusations
July 18, 2012, 3:05 PM
Oracle Gets Nothing in Google Android Lawsuit, Opts for Appeal
June 21, 2012, 11:06 AM
Google Completes Acquisition of Motorola Mobility, Layoffs Likely
May 22, 2012, 11:47 AM
Google is Now (Almost) the Proud Owner of Motorola After EU/U.S. Approval
February 14, 2012, 11:40 AM
BlackBerry Passport, Q5, and Z30 Go on Sale Till Dec. 30, Z30 is Nearly Sold Out
December 26, 2014, 4:04 PM
Despite Bump to $99/Year, Amazon Prime Attracts 10 Million New Customers
December 26, 2014, 3:08 PM
Qualcomm Snapdragon 810, New Gobi Modem Pass Cat. 9 LTE-A Test on UK's EE
December 25, 2014, 11:30 PM
Happy Holidays From DailyTech!!
December 24, 2014, 5:07 PM
Nokia's Sweet $250 Android Lollipop N1 Tablet is Rumored for Jan. 7 China Launch
December 24, 2014, 1:45 PM
Samsung Preps 4 GB LPDDR4 RAM to Power "4K" Smartphones in 2015
December 23, 2014, 10:38 AM
Most Popular Articles
Miyamoto: Nintendo is Prepping Successor to Troubled Wii U
December 22, 2014, 6:28 PM
Amazon's Kindle Fire HDX 8.9 Drops to $299 (30 Percent Off) for a Day
December 22, 2014, 10:57 AM
Android-Powered BLU Studio 7.0 Claims to be the "World's Largest Smartphone"
December 19, 2014, 2:40 PM
Airbus A350 XWB Passenger Jet Takes Off, First Unit Delivered to Qatar Airlines
December 22, 2014, 1:22 PM
Mississippi AG Drops Anti-Google Subpoena After Dirty MPAA Ties Are Revealed
December 22, 2014, 9:51 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information