So, are you over the fact that Google sold Motorola Mobility to Lenovo yesterday and are wondering why they would do it? I’ve got a reason, but let me recap what got us to this point. Google dropped $12.5 billion in 2011 for the patents. At the time, it was thought to be the best defence against Apple. However things have been going south ever since with News.com reporting that Motorola Mobility was bleeding cash:
Motorola’s results again weighed on Google’s profitability, with the unit’s operating loss actually widening to $384 million from $152 million a year ago.
Revenue, meanwhile, fell nearly 18 percent from a year ago to $1.24 billion, or 7 percent of Google’s total revenue for the period.
That’s not good and it’s a good reason why Google might have decided to take a $9 billion dollar haircut to get rid of Motorola Mobility. We’ll see if Google succeeds on that front seeing as Lenovo being a Chinese company faces significant hurdles in getting this deal approved by the US government.
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This entry was posted on January 30, 2014 at 5:56 pm and is filed under Commentary with tags Google, Lenovo. You can follow any responses to this entry through the RSS 2.0 feed.
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Why Google Dumped Motorola Mobility: It Was Bleeding Cash
So, are you over the fact that Google sold Motorola Mobility to Lenovo yesterday and are wondering why they would do it? I’ve got a reason, but let me recap what got us to this point. Google dropped $12.5 billion in 2011 for the patents. At the time, it was thought to be the best defence against Apple. However things have been going south ever since with News.com reporting that Motorola Mobility was bleeding cash:
Motorola’s results again weighed on Google’s profitability, with the unit’s operating loss actually widening to $384 million from $152 million a year ago.
Revenue, meanwhile, fell nearly 18 percent from a year ago to $1.24 billion, or 7 percent of Google’s total revenue for the period.
That’s not good and it’s a good reason why Google might have decided to take a $9 billion dollar haircut to get rid of Motorola Mobility. We’ll see if Google succeeds on that front seeing as Lenovo being a Chinese company faces significant hurdles in getting this deal approved by the US government.
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This entry was posted on January 30, 2014 at 5:56 pm and is filed under Commentary with tags Google, Lenovo. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.