Linked by Thom Holwerda on Wed 29th Jan 2014 22:25 UTC, submitted by bowkota

Google is selling Motorola Mobility to Lenovo, giving the Chinese smartphone manufacturer a major presence in the US market. Lenovo will buy Motorola for $2.91 billion in a mixture of cash and stock. Google will retain ownership of the vast majority of Motorola's patents, while 2,000 patents and a license on the remaining patents will go to Lenovo. Lenovo will pay Google $660 million in cash, $750 million in stock, with the remaining $1.5 billion paid out over the next three years.


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Don't Worry
by reduz on Wed 29th Jan 2014 23:37 UTC
Member since:

Microsoft will do the same with Nokia eventually.

Reply Score: 3

RE: Don't Worry
by Nelson on Wed 29th Jan 2014 23:53 in reply to "Don't Worry"
Nelson Member since:

And why would Microsoft sell off a massive hardware competency that matches precisely with their vertical goals?

Think of Nokia not just in the context of phones, but in the context of supply chain management, manufacturing footprint, and hardware expertise across the board. This could trickle down to tablets, wearables, and even Xbox.

Oh, and a nice side effect of this is that Motorola will be a licensee of Microsoft patents. The last major holdout has fallen. Lenovo already licenses from MSFT over Android infringements.

Reply Parent Score: 4

RE[2]: Don't Worry
by kpugovkin on Thu 30th Jan 2014 02:15 in reply to "RE: Don't Worry"
kpugovkin Member since:

You are right as usual and I guess you'll get a little percentage of those license payments. Man, it's good to work on MSFT these days.

Reply Parent Score: 4

RE: Don't Worry
by galvanash on Thu 30th Jan 2014 00:12 in reply to "Don't Worry"
galvanash Member since:

Microsoft will do the same with Nokia eventually.

Maybe, but if that happens it would go down as an admission of complete incompetence, a full-stop failure of what has become their central business strategy in mobile over the last 3 years.

Google bought MM for the patents. Maybe they got a bum deal, maybe they paid too much, etc. - but them selling off the rest of it is entirely logical and expected.

The MM deal may go down as a financial failure, but it wasn't a strategic "bet the business" kind of thing that Microsoft buying Nokia was. Google can afford to lose 7 billion dollars, Microsoft cannot afford to fail in going vertically integrated in mobile - there is no turning back from it.

ps - I don't actually think Microsoft will ever sell what was Nokia, I think doing so would be absurd. But if they did...

Edited 2014-01-30 00:16 UTC

Reply Parent Score: 6

RE[2]: Don't Worry
by tylerdurden on Thu 30th Jan 2014 03:50 in reply to "RE: Don't Worry"
tylerdurden Member since:

Depending on how Google were able to structure Motorola's loses tax wise under their tenure, the net cost of Motorola's patents comes around $2 to $3 billion as far as Google is concerned (after the sale to Lenovo).

I honestly have no clue what the actual worth of that portfolio is. Thus it's hard to gauge whether it's a good proposition or not. My gut feeling is that it is still overpriced, as most patent portfolios tend to be. I assume Google's management will spin it as having amortized back in 3 yrs over 3/4's of their investment to get a patent nuclear option instead.

Edited 2014-01-30 04:08 UTC

Reply Parent Score: 3

RE: Don't Worry
by ronaldst on Thu 30th Jan 2014 00:19 in reply to "Don't Worry"
ronaldst Member since:

I wouldn't bet a few Dogecoins on that.

With WP8, Microsoft fixed it's hardware problems (no more android retrofits). Now they've got the software side left to figure out (UI and app wise). Microsoft is a relentless juggernaut.

Reply Parent Score: 2