Google to buy motorola mobility

  • Posted: 15 August 2011 08:47 AM

    http://www.marketwatch.com/story/google-buying-motorola-mobility-for-125-billion-2011-08-15

    AAPL has gone slightly into the red premarket.

    How do you feel if you are Samsung?

         
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    Posted: 15 August 2011 08:54 AM #1

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    “Even in the worst of times, someone turns a profit. . ” —#162 Ferengi: Rules of Acquisition

         
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    Posted: 15 August 2011 08:57 AM #2

    Now suddenly, every firm that has tied their future to GOOGLE’s Android operating system wakes up, only to find out that their “benefactor” has now decided to TAKE OVER their businesses.

    It would be safe to assume, that the older versions of Android, will now be orphaned, and the newest and best versions will of course, be rolled out exclusively on the Droids, made by MMI/GOOG.

    Can we call the new unit, ME-ME-DROIDS?

    Once more, Google proves that they are willing to scarf up any data, and work over anyone and everyone as part of it’s “DO NO EVIL” program.

    Signature

    “Even in the worst of times, someone turns a profit. . ” —#162 Ferengi: Rules of Acquisition

         
  • Posted: 15 August 2011 09:07 AM #3

    Google are pretty soon going to have to settle with Oracle.  The previous defense that they didn’t actually make any phones, just open sourced software that others use just flew out the window.

    Plus the current litigation between Apple and Motorola has now officially escalated into Patent Wars 2011.  Apple are Google are now directly suing each other!.

    I personally think this is the start of the downfall of Google and Android.  How are the other Android licensee’s going to react to now being in direct competition with Google with handset and tablets? Not well I fear.  Motorola isn’t even profitable as it is and I doubt Google throwing billions of more R&D dollars at it will solve the problem.

    Kinda makes the Nortel patents group purchase for $4.5B a great bargain.  Google just paid 2.8 times that, $12.5B in a last ditch attempt to get some patent leverage against Apple and Microsoft.  Jobs must be having a right laugh!

         
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    Posted: 15 August 2011 09:28 AM #4

    TanToday - 15 August 2011 11:57 AM

    Now suddenly, every firm that has tied their future to GOOGLE’s Android operating system wakes up, only to find out that their “benefactor” has now decided to TAKE OVER their businesses.

    Microsoft.  Zune.  Plays for Sure.  We all know that episode.

    Google is doing the same thing to its partners that Microsoft did with its “MP3 player” partners.

    Its a good day to be an Apple lawyer.

    [ Edited: 15 August 2011 09:40 AM by Treehouse ]      
  • Posted: 15 August 2011 09:32 AM #5

    Being an AAPL holder, Im biased, but doesn’t this kind of confirm that Android really wasn’t taking over the smartphone market?  I mean, why spend 12.5 Billion if you’re already “surging” in market share?

    It seems to reveal that Android needed something it didn’t have.

    [ Edited: 15 August 2011 09:35 AM by qualitywte ]      
  • Posted: 15 August 2011 09:35 AM #6

    iPad owns the tablet space, Android is a non-starter.  Tablets will dominate the computing landscape in years to come.  Google are terrified of irrelevance. 

    Not rocket science (but of course beyond anyone in WS for a few weeks yet)

         
  • Posted: 15 August 2011 09:56 AM #7

    kiwirob - 15 August 2011 12:07 PM

    Kinda makes the Nortel patents group purchase for $4.5B a great bargain.  Google just paid 2.8 times that, $12.5B in a last ditch attempt to get some patent leverage against Apple and Microsoft.  Jobs must be having a right laugh!

    Motorola has 3x the patents that Nortel owned.  Motorola’s purchase price is 3x of Nortel. 

    How good are the patents that improve GOOG’s strategic position and will this pass regulatory approval are two questions that come to my mind.

         
  • Posted: 15 August 2011 09:58 AM #8

    Motorola was sabre rattling about enforcing its patent position against other Android partners. I wonder with Google in charge, if they will now back away from that position.  Does Google as the new owner of an undoubtably strong patent portfolio, use that to shield ALL Android partners vs Apple, or just itself?

    If I was Nokia, this morning I would feel real good about my Microsoft choice right now. As for everyone else, they just watched their “partner” violate one of the first rules of business. Don’t compete with your customers.

         
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    Posted: 15 August 2011 10:03 AM #9

    In other news, IDCC is down 20% PM.  All this money being thrown around is causing waves for sure.  So, up to now, AAPL is the only one that hasn’t made a major move.  I personally think an IDCC + EK buyout would be a powerful combination, for not much cash.

         
  • Posted: 15 August 2011 10:08 AM #10

    It has to be about patents, just patents to save Android. Google must be feeling weak, and Android must really be going nowhere, despite the activations bluster. Google don’t yet own mobile advertising, and probably now never will.

    Their greed may have lost them their core market in the medium term.

         
  • Posted: 15 August 2011 10:09 AM #11

    Wow !!

    #1. Google paid 60+% over the market price. They could have saved a few billion, but they wanted to make sure they got the deal.

    #2. All the google blog talk about “we are open, but look at these bad guys who bought the patents’ was a setup to justify this acquisition. No wonder they were hyper.

    [ Or they were so hyper because of the patent loss that they bought motorola at such a price? ]

    #3. Let’s not assume google is microsoft. While the comparisons with MSFT in terms of getting into their partners business is apt, I think google is smart(er) and will figure out how to assure their partners. This shows they want android to succeed and they will pull out all stops to make that happen, even if it means just using the patents and letting the hardware die (that would be an extreme scenario).

    #4. Do not know if apple should be happy or charged up because of this. The upcoming google wars is when steve needs to be healthy.

         
  • Posted: 15 August 2011 10:18 AM #12

    This deal makes so little sense to me that the only explanation that allows my head to wrap around it are fees of ibankers.  For the lawyers and bankers, this is just what the doctor ordered.  Somebody with a fee to earn kept whispering into Sergey’s ear.

    I used to be long GOOG.  What a terrific generator of cash!  But even while their stock was rising I got out because I had the distinct impression that Google wasn’t serious about what they did with their cash.  They would go on huge hiring sprees, they would create multiple skunkwork projects, they would continuously launch beta projects into the public eye that were half-baked at best. 

    This acquisition seems like just another beta project.  Long on audacity and short on business acumen. 

    Someday this company is going to grow up, but until then, my money is parked elsewhere.

    [ Edited: 15 August 2011 10:21 AM by macorange ]      
  • Posted: 15 August 2011 10:20 AM #13

    Does anyone have any specifics (or a link) about how strong MMI’s patent case is against AAPL? Have they won any preliminary rulings? Is it realted to core iOS technology/functionality?

    I guess if we weren’t scared of MMI before GOOG bought them, than we shouldn’t be now. Obviously the big fear is that they have us somewhere and we have to back off our recent wins against HTC because of this.

         
  • Posted: 15 August 2011 10:29 AM #14

    JRay - 15 August 2011 01:20 PM

    Does anyone have any specifics (or a link) about how strong MMI’s patent case is against AAPL? Have they won any preliminary rulings? Is it realted to core iOS technology/functionality?

    Moto had said that after extensive negotiations, Apple declined to pay to license Motorola patents. That would suggest to me that Apple doesn’t believe the patents are valid, and that litigation will broadly resolve in Apple’s favour.

    As for Google, it takes years to build the trust of your partners, but only one day to lose it forever. I think they’ve lost it. Look how RIMM is up 6% on this news.

         
  • Posted: 15 August 2011 10:38 AM #15

    JRay - 15 August 2011 01:20 PM

    As for Google, it takes years to build the trust of your partners, but only one day to lose it forever. I think they’ve lost it. Look how RIMM is up 6% on this news.

    Wasn’t RIMM on the verge of adopting Android?