Originally Posted by matrix07
Again. Why not value patents at $7 Billion then Google had got Moto for free. Whatever the math used, however you want to pat Google's back, the cold hard fact is that Google rushed to make a decision and shelled out almost $10 B. (after minus Moto cash) for a company that's leaking money every quarter.
Point is, YouTube was leaking money every quarter too. Someone once calculated that it would have taken YouTube something like 10 years to recoup its purchase price plus losses, and in fact, some people think YouTube is still unprofitable depending on accounting, but what value do you place on owning the world's most watched video site?
Google is in this for the long haul, like Amazon, and short term profit and loss don't drive strategic decisions. I think it is one of the failings of Apple that they hyperfocus on margins. They make paultry few acquisitions, and aren't spending anywhere near the amount of their $100+B warchest on basic R&D that they should be spending. I'm not talking about figuring out how to make the iPhone 7's screen 1mm smaller, I'm talking about *basic* R&D for stuff unrelated to near term products.
You look at IBM, HP, AT&T, Sun, Google, even Microsoft, these are companies that fund basic research labs, some even unrelated to developing a product at all, whose main result is often just academic papers. Apple's main results of R&D tend to be lots of patents. Apple spent $3 billion on R&D in 2012. Google spent $6 billion. Microsoft spent almost $10 billion on R&D in 2012. IBM spent $6.4 billion in 2012. Even HP Labs spends $3 billion. This buys stuff like next-generation storage advancements, silicon processes, image censors. Apple by contrast effectively outsources their R&D to Korea and Japan. Who's inventing the next generation of flexible displays? Of printable flexible circuits? Not Apple, Apple will be forced to license those.
Maybe Motorola will turn out to be a bust for Google, but I give them credit for trying, and for having a chance at rescuing what was once a great American company. You know, the company that *invented the cellphone*. That created the communication systems used by NASA. That built (the failed) Iridium satellite phone network. That created the original RAZR design. That built the CPU, you know, that Steve Jobs used for the Macintosh.
Everything that Google is trying to do, from self driving cars, to stratospheric internet balloons, to building the world's largest neural network for language understanding, or Google Glass, at least they are trying to do something crazy and new. HP is trying to commercial memristors and self-assembling nanostructures. IBM is working on practical quantum computers. All of this stuff might fall on its face. But as the Apple commercial says, here's to the crazy ones.
With Apple's huge warchest of money, they could be doing a lot more amazing things than putting 5 year old fingerprint scanner technology into the home button.