Palantir Posted January 29, 2014 Share Posted January 29, 2014 ^ROFL Link to comment Share on other sites More sharing options...
Liberty Posted January 29, 2014 Author Share Posted January 29, 2014 Seriously? http://techcrunch.com/2014/01/29/lenovo-to-buy-motorola-mobility-from-google/ :o Link to comment Share on other sites More sharing options...
rkbabang Posted January 29, 2014 Share Posted January 29, 2014 Whats another billion to Google? http://venturebeat.com/2014/01/29/google-ordered-to-pay-as-much-as-1-billion-to-patent-troll-vringo/ That's insane. That judge, the vringo management & shareholders should all be tarred and feathered. Link to comment Share on other sites More sharing options...
blainehodder Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. Link to comment Share on other sites More sharing options...
jeffmori7 Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! Link to comment Share on other sites More sharing options...
cayale Posted January 29, 2014 Share Posted January 29, 2014 Arris was 2B and 10.6MM shares of stock. And GOOG got NOLs and patents. It has basically been cash flow breakeven since restructuring. This wasn't the worst deal in the world. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! Also count the money that Motorola lost under Google. Link to comment Share on other sites More sharing options...
Guest wellmont Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! there was $3b net cash so $9.5b $3b from Lenovo 2.2b from arris plus $250m stock = cost of patents = ($4b + operating losses) It depends on the value of the patents they keep. but it looks way worse than it was. this was probably the original strategy to capture the moto IP. I think this makes Lenovo very strong in Android now. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 And NOLs and patents. It has basically been cash flow breakeven since restructuring. This wasn't the worst deal in the world. Where do you figure cash flow break-even? Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! Thanks for clarifying. I'm midly surprised Google is giving up already. I would assume it will take at least a few years to gain traction. But in the long run, it might make sense to get out soon rather that later. Link to comment Share on other sites More sharing options...
cayale Posted January 29, 2014 Share Posted January 29, 2014 And NOLs and patents. It has basically been cash flow breakeven since restructuring. This wasn't the worst deal in the world. Where do you figure cash flow break-even? Take a look. Ex-amortization the Motorola side was basically breakeven. Link to comment Share on other sites More sharing options...
cayale Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! Thanks for clarifying. I'm midly surprised Google is giving up already. I would assume it will take at least a few years to gain traction. But in the long run, it might make sense to get out soon rather that later. I suspect they came to the conclusion hardware is a crummy business. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! Thanks for clarifying. I'm midly surprised Google is giving up already. I would assume it will take at least a few years to gain traction. But in the long run, it might make sense to get out soon rather that later. I suspect they came to the conclusion hardware is a crummy business. Not according to Apple. Link to comment Share on other sites More sharing options...
Liberty Posted January 29, 2014 Author Share Posted January 29, 2014 So will Nest start designing phones now? Link to comment Share on other sites More sharing options...
Palantir Posted January 29, 2014 Share Posted January 29, 2014 Google is also going to shut down Nexus right? Link to comment Share on other sites More sharing options...
Liberty Posted January 29, 2014 Author Share Posted January 29, 2014 Google is also going to shut down Nexus right? I doubt it. They've had Nexus devices made by others before, they'll probably revert to that model. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 http://www.reuters.com/article/2014/01/29/us-google-lenovo-idUSBREA0S1YN20140129 Lenovo nears $3B deal to buy Google's Motorola handset division From $12.5 billion purchase in 2012 to $3 B sale in beginning of 2014...talk about value destruction. There was 3B in cash at Motorola at the time..still it is 9.5B$ to 3B$, but there was a sell to Arris as well in the meantime if I remember well...still...what a loss! there was $3b net cash so $9.5b $3b from Lenovo 2.2b from arris plus $250m stock = cost of patents = ($4b + operating losses) It depends on the value of the patents they keep. but it looks way worse than it was. this was probably the original strategy to capture the moto IP. I think this makes Lenovo very strong in Android now. BTW, great comments here: http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/yeah-called-it-a-year-ago/ Brilliant as usual ;). Low risk way indeed. ::) Link to comment Share on other sites More sharing options...
txlaw Posted January 29, 2014 Share Posted January 29, 2014 Wow, Lenovo really making the moves in the new year. This is a very good deal on their part. They pretty much have it all (in terms of computer hardware) under their roof now. Are they becoming the next Samsung? Could be a fantastic move for GOOG as well. China isn't exactly the best market for their software and services, but if Lenovo becomes an ally, then that could mean a lot of future growth for GOOG there once the Chinese government liberalizes. One thing's for sure -- Tim Cook's job just got a lot harder, as he is clearly banking quite a bit on China. With Lenovo already being number 3 in that market, and with Motorola Mobility now in their pocket, one can expect them to come out with hardware running Android that will be on par with the iPhone. For a lot less money. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 Wow, Lenovo really making the moves in the new year. This is a very good deal on their part. They pretty much have it all (in terms of computer hardware) under their roof now. Are they becoming the next Samsung? Could be a fantastic move for GOOG as well. China isn't exactly the best market for their software and services, but if Lenovo becomes an ally, then that could mean a lot of future growth for GOOG there once the Chinese government liberalizes. One thing's for sure -- Tim Cook's job just got a lot harder, as he is clearly banking quite a bit on China. With Lenovo already being number 3 in that market, and with Motorola Mobility now in their pocket, one can expect them to come out with hardware running Android that will be on par with the iPhone. For a lot less money. And the rationalization continues...... Link to comment Share on other sites More sharing options...
Palantir Posted January 29, 2014 Share Posted January 29, 2014 Why exactly is this good for Android? Lenovo is a hardware business...I expect they will be agnostic when it comes to this. Link to comment Share on other sites More sharing options...
Guest wellmont Posted January 29, 2014 Share Posted January 29, 2014 Joe Magyer @Magyer Google effectively paid $4.4B for 15,000 patents. Not bad -- Apple and Microsoft paid $4.5B for the 6,000 patent Nortel portfolio. $GOOG @JohnPaczkowski In orig 10Q google valued motos "patents and developed technology" at $5.5 billion yep. google got their patents at a discount. apple paid full price. :) kinda like their customers. ;) consensus seems to be forming that goog did really well on this deal! Link to comment Share on other sites More sharing options...
west Posted January 29, 2014 Share Posted January 29, 2014 I'm not long Google myself, and I don't know all the details, but I think the sale of the Motorola Mobility smartphone unit business probably makes a lot of sense. If you have conflicting viewpoint, I really recommend reading The Computerless Computer Company, which is about semiconductor designers and whether or not they should own their own fabs. The gist is: No. Fabs are not where value is added in the semiconductor business, and they are very capital intensive. Semiconductor companies should outsource their fabrication to someone else. The same principal probably applies here. Does the smartphone manufacturing side of the business actually add value? Should Google stick with it? My guess is no. The paper's definitely worth at least one read: http://hbr.org/1991/07/the-computerless-computer-company/ar/1 Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 Joe Magyer @Magyer Google effectively paid $4.4B for 15,000 patents. Not bad -- Apple and Microsoft paid $4.5B for the 6,000 patent Nortel portfolio. $GOOG @JohnPaczkowski In orig 10Q google valued motos "patents and developed technology" at $5.5 billion yep. google got their patents at a discount. apple paid full price. :) kinda like their customers. ;) consensus seems to be forming that goog did really well on this deal! This is hilarious as usual. Apple wasn't the sole buyer, so what Apple paid was much less. Oh and by the way, Apple actually has won a lot of lawsuits against Android vendors. Motorola OTOH has actually lost most of its lawsuits and gotten into trouble for using FRAND patents in lawsuits. Not to mention adding to Google's antitrust troubles. Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 I'm not long Google myself, and I don't know all the details, but I think the sale of the Motorola Mobility smartphone unit business probably makes a lot of sense. If you have conflicting viewpoint, I really recommend reading The Computerless Computer Company, which is about semiconductor designers and whether or not they should own their own fabs. The gist is: No. Fabs are not where value is added in the semiconductor business, and they are very capital intensive. Semiconductor companies should outsource their fabrication to someone else. The same principal probably applies here. Does the smartphone manufacturing side of the business actually add value? Should Google stick with it? My guess is no. The paper's definitely worth at least one read: http://hbr.org/1991/07/the-computerless-computer-company/ar/1 Apparently the folks at Google didn't read this paper before they bought Motorola. Maybe their search engine couldn't find it? Link to comment Share on other sites More sharing options...
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