IWETHEY v. 0.3.0 | TODO
1,095 registered users | 1 active user | 0 LpH | Statistics
Login | Create New User
IWETHEY Banner

Welcome to IWETHEY!

New Google passes Motorola phones to Lenovo.
http://www.reuters.c...BREA0S1YN20140129

(Reuters) - Lenovo Group said on Wednesday it agreed to buy Google Inc's Motorola handset division for $2.91 billion, in what is China's largest-ever tech deal as Lenovo buys its way into a heavily competitive U.S. handset market dominated by Apple Inc.

It is Lenovo's second major deal on U.S. soil in a week as the Chinese electronics company angles to get a foothold in major global computing markets. Lenovo last week said it would buy IBM's low-end server business for $2.3 billion.

The deal ends Google's short-lived foray into making consumer mobile devices and marks a pullback from its largest-ever acquisition. Google paid $12.5 billion for Motorola in 2012. Under this deal the search giant will keep the majority of Motorola's mobile patents, considered its prize assets.


While Google did some good things with Moto, it probably makes sense for them to pass it on to Lenovo. Keeping the patents is a good thing for the future of Android.

Cheers,
Scott.
New Yep, it does make sense.
It's like Pepsi spinning off Yum Brands (KFC, Taco Bell, Pizza Hut).

No way that McDonald's, Wemdy's, Burger King, Domino's, Subways, etc. would ever serve Pepsi products when the parent company owns competitors.
Alex

“There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "my ignorance is just as good as your knowledge.”

-- Isaac Asimov
New Also, possible tax shenanigans
It depends on how the sale was structured, which is unknown at this time, but (purchase price - sale price) may not paint the whole picture.

http://www.theregist...lity_lenovo_sale/
Google can expect to reap $700m a year in tax deductions from future profits each year through 2019. Google also will be able to immediately reduce its taxes by $1bn due to Motorola Mobility's US net operating loss, and by a further $700m due to its foreign operating loss,
New One would expect nothing less from the tax lawyers. :-/
New Heh
Let's hope those patents were worth $9B.
New They probably didn't have much choice but to buy them.
Patents are a big part of the war chest of established players to keep out upstarts. They needed a big portfolio to protect Android while they were growing the market.

(Look at the court battles between Samsung and Apple...)

Cheers,
Scott.
     Google passes Motorola phones to Lenovo. - (Another Scott) - (5)
         Yep, it does make sense. - (a6l6e6x)
         Also, possible tax shenanigans - (scoenye) - (1)
             One would expect nothing less from the tax lawyers. :-/ -NT - (Another Scott)
         Heh - (pwhysall) - (1)
             They probably didn't have much choice but to buy them. - (Another Scott)

Welcome to those that can stand it.
61 ms