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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!

 

Certainly sounds like they got a discount ;):

 

http://www.theverge.com/2013/4/25/4267830/judge-rules-motorolas-patents-arent-worth-the-4-billion-a-year-it-wanted-from-microsoft/in/2795023

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Official press release:

http://www.sec.gov/Archives/edgar/data/1288776/000128877614000008/goog99101292014.htm

 

Interestingly, GOOG is taking part of their consideration in Lenovo stock, just as IBM did when they sold their server biz to Lenovo. 

 

And here's a Bloomberg article on the deal where the Lenovo CEO speaks about the deal:

http://www.bloomberg.com/news/2014-01-29/lenovo-said-near-deal-to-buy-google-handset-unit-for-about-3b.html

 

Lenovo will continue using the Motorola brand in the U.S. and Latin America and is considering the use of the name in China, Yang said. The company will gain scale and cost advantages from Motorola and plans to sell 100 million smartphones in the year after the deal, he said.

 

“We can not only turn around the Motorola business but further grow in this market,” Yang said during the call. “Motorola and Lenovo are competitive in different areas. When the deal closes, we will leverage all the capabilities of each side.”

 

Would love to see a Lenovo/Motorola phone that is held in as high esteem as an iPhone or Galaxy.

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Official press release:

http://www.sec.gov/Archives/edgar/data/1288776/000128877614000008/goog99101292014.htm

 

Interestingly, GOOG is taking part of their consideration in Lenovo stock, just as IBM did when they sold their server biz to Lenovo. 

 

And here's a Bloomberg article on the deal where the Lenovo CEO speaks about the deal:

http://www.bloomberg.com/news/2014-01-29/lenovo-said-near-deal-to-buy-google-handset-unit-for-about-3b.html

 

Lenovo will continue using the Motorola brand in the U.S. and Latin America and is considering the use of the name in China, Yang said. The company will gain scale and cost advantages from Motorola and plans to sell 100 million smartphones in the year after the deal, he said.

 

“We can not only turn around the Motorola business but further grow in this market,” Yang said during the call. “Motorola and Lenovo are competitive in different areas. When the deal closes, we will leverage all the capabilities of each side.”

 

Would love to see a Lenovo/Motorola phone that is held in as high esteem as an iPhone or Galaxy.

 

Maybe it'll be a Lenovo/Motorola/Blackberry phone that will access the secure IoT cloud through the M2M infrastructure.  ;)

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I like the deal. Owning Motorola (aside from the patent debate) never really made since for Google.

Perhaps I just hated the original deal. Google showed they weren't serious about Motorola when the Nexus phones were the flagship products over an internal device.

 

 

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More than anything else, Motorola was a drag on their EPS ( ? single digits). Good thing they sold it.  Not sure about the value of its patents. Google keeps spending capital to find another big winner in their portfolio of services and products..

 

They have no strategy. They keep throwing money around trying to strike gold. We'll, they've come up with very little.

 

Motorola is just another in a ling series of failed Google acquisitions.

 

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The other thing that the Lenovo/Motorola deal suggests is that Android and the hardware manufacturers have come far enough to where the advantages associated with being a "vertically integrated" mobile OS provider is coming to an end.  In other words, the commoditization/decommoditization scenario for the OS providers may be further along than we think it is. 

 

If that is the case, then the recent warming of relations between Google and Samsung makes a lot of sense, as the money is to be made in the layers above and below the OS.  See http://arstechnica.com/gadgets/2014/01/nuclear-stand-down-google-samsung-and-the-sale-of-motorola-mobility/ .

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