360° Coverage : Google Bids Goodbye To The Smartphone Business With $2.9 Billion...

2 Updates
Google Bids Goodbye To The Smartphone Business With $2.9 Billion Motorola Sale

Google Bids Goodbye To The Smartphone Business With $2.9 Billion Motorola Sale

Jan 29 2014, 10:53pm CST | by

For all its commitment to the Android ecosystem, Google’s big play in the smartphone market is over with its $2.9 billion sale of Motorola Mobility to Lenovo. That’s a major drop from the $12.5...

Filed under: news

 
 
 

30 weeks ago

Google Bids Goodbye To The Smartphone Business With $2.9 Billion Motorola Sale

Jan 29 2014, 10:53pm CST | by

For all its commitment to the Android ecosystem, Google’s big play in the smartphone market is over with its $2.9 billion sale of Motorola Mobility to Lenovo. That’s a major drop from the $12.5 billion it paid to buy the Santa Clara, Calif-based company in 2011, which brought with it a tranche of patents, talented engineers and insights into the mobile space — and it helps cover the $3.2 billion that Google paid for Nest, the maker of the learning thermostat earlier this month. (Google’s M&A team have certainly had a busy start to 2014.)

Did Google lose big on Motorola? That depends on how much you think Motorola’s patents and mobile insights were worth when Google bought the company. Here’s how Google broke it down in a June 2010 SEC filing: “Of the $12.4 billion total purchase price [for Motorola], $2.9 billion was cash acquired, $5.5 billion was attributed to patents and developed technology, $2.6 billion to goodwill, $730 million to customer relationships, and $670 million to other net assets acquired.”

Financials aside, the sale of Motorola is also a bold statement about where Google now wants to take its business for Big Data and advertising: into the world of the Internet of things and wearable gadgets.

Google’s CEO Larry Page said today that the sale did not mean that Google was moving out of hardware. He added that the markets for wearables and the smart home, which Google is moving into via Nest and its Glass product, were less mature and had a different dynamic to that of the mobile industry. But: “We’re excited by the opportunities to build pretty commonplace new products for users within these emerging ecosystems.”

Google in the meantime reaffirmed its commitment to Android, saying it would “devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”

With Glass, Google will still hold the reins to hardware that runs on Android, while cutting itself free of a uncomfortable conflict of interest it held with other smartphone manufacturers

“Moto as a device manufacturer was never really strategic to Google,” said Jack Gold, principle analyst at research firm Jack Gold Associates. “They don’t need to be in the device business, and it got them into some hot water with their leading OEMs.”

“It gets Google out of channel conflict,” he added. “Gets them out of a business they don’t have a chance of making any real money in, and gets them the ability to concentrate on real opportunities without the diversion of having to run a device manufacturing company. I think that was the plan all along – Google would milk Moto for a couple of years then sell it off.”

As for Lenovo, the Motorola purchase will give it a 6% share of the global smartphone shipments based on 2013 from Strategy Analytics, making the combined entity the world’s third-largest smartphone vendor by volume after Samsung (32%) and Apple (15%).

Also on Forbes:

In Photos: Google Glass

Source: Forbes Business

 
Update
2

3 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double t ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

India offers red carpet, not red tape, Modi hard sells India (Roundup)
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday hard sold India to Japanese investors saying that his country offers only a red carpet and not red tape while dubbing his five-day trip to Japan that ends Wednesday as "very successful".
 
 
Fear grips onlookers as Ebola victim walks through market
Monrovia, Sep 2 (IANS) A video footage has emerged from Liberia showing a person tagged positive for Ebola virus disease (EVD) walking through a busy market, sending hundreds of horrified onlookers fleeing in fear, a media report said Tuesday.
 
 
Half of British young women cannot locate vagina
London, Sep 2 (IANS) Half of young women are unable to properly label a vagina on a medical diagramme, while 65 percent admitted having a problem simply using the words "vagina" or "vulva", a British survey has revealed.
 
 
Nepal, India to hold energy talks
Kathmandu, Sep 2 (IANS) Officials from Nepal and India will be meeting in New Delhi Wednesday and Thursday to hold talks on the much-touted Power Trade Agreement (PTA) between the energy-starved nations.
 
 
 

Latest from the Network

India vs England: Scoreboard, fourth ODI
Birmingham, Sep 2 (IANS) The following is the final scoreboard of the fourth ODI between India and England at Edgbaston here Tuesday. England Alastair Cook c Raina b Kumar 9 Alex Hales b Kumar 6 Gary Ballance c Rahane...
Read more on Sport Balla
 
Britain asks citizens to review travel plans to Pakistan
Islamabad, Sep 2 (IANS) The British Foreign and Commonwealth Office (FCO) has advised its citizens to review their planned trips to Pakistan in view of the volatile security situation in the country. "There is a high...
Read more on Politics Balla
 
Jaime King: Motherhood is all that matters
Jaime King says her son is the most important thing in her life now. The 'Sin City: A Dame to Kill For' star welcomed her first child James - her son with husband Kyle Newman - into the world last October and since she...
Read more on Celebrity Balla
 
Chris Brown pleads guilty to assault
Chris Brown has pleaded guilty to assault. The 'Beautiful People' hitmaker was sentenced to time already served by a judge after accepting a plea deal at a Washington DC superior court today (02.09.14), where he was...
Read more on Celebrity Balla
 
Piers Morgan confirms CNN departure
Piers Morgan has confirmed he is leaving CNN after turning down a new deal. The British presenter - whose show 'Piers Morgan Live' was axed by CNN earlier this year - took to his Twitter account on Tuesday (02.09.14)...
Read more on Celebrity Balla
 
Helen Mirren is learning Italian
Dame Helen Mirren is learning Italian. The 69-year-old actress owns a villa in Salento, South-East Italy, with her husband Taylor Hackford and although the couple also have homes in London, Los Angeles and France they...
Read more on Celebrity Balla
 
Number of displaced civilians inside Ukraine doubles: UNHCR
Geneva, Sep 2 (IANS) The UN High Commissioner for Refugees (UNHCR) Tuesday said the number of people displaced inside Ukraine has doubled in the past three weeks since the ongoing fighting in eastern Ukraine is driving...
Read more on Politics Balla
 
15 troops, 50 militants killed in Ukraine clashes
Kiev, Sep 2 (IANS) At least 15 troops and 50 pro-Russian militants have been killed since Monday as Ukrainian forces engaged in fierce fighting against militias in the country's eastern regions of Donetsk and Lugansk...
Read more on Politics Balla
 
India offers red carpet, not red tape, Modi hard sells India (Roundup)
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday hard sold India to Japanese investors saying that his country offers only a red carpet and not red tape while dubbing his five-day trip to Japan that ends...
Read more on Politics Balla
 
Indian woman charged for having illegitimate child
Dubai, Sep 2 (IANS) An Indian man filed a case in a court in the UAE against his wife, who gave birth to a child in 2010 despite their not having sex for eight years, a media reported said Tuesday. The man, who is...
Read more on Politics Balla