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Lenovo to reportedly buy Google's Motorola Mobility for $2.9 billion [update: confirmed]

post #1 of 235
Thread Starter 
According to multiple reports on Wednesday, Google is nearing a deal to unload Motorola Mobility to Lenovo for some $2.91 billion less than two years after the Internet giant bought the handset maker for $12.5 billion in 2012.

Update: Google CEO Larry Page has issued a statement confirming Lenovo's acquisition of Motorola Mobility for $2.91 billion.

"But the smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices," Page writes. "It's why we believe that Motorola will be better served by Lenovo--which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world."

Lenovorola


Citing people familiar with the matter, Reuters reports Lenovo is in the final stages of wrapping up the $3 billion purchase Google's struggling handset division, a move that would forge inroads into the lucrative U.S. smartphone market. Sources have independently confirmed the deal to Bloomberg and TechCrunch.

The report claims Lenovo will use cash, stock and deferred payments to finance the acquisition. In 2012, Google purchased Motorola for $12.5 billion and allowed the company to continue operating under its own branding. Subsequent Motorola releases have seen lackluster performance, including the flagship Moto X lineup.

When Google made the Motorola buy in 2012, some speculated the acquisition was fueled at least in part by American telecom's patent cache. A subsequent statement from Motorola confirmed that Google will be hanging on to a "vast majority" of patents, including pending patent applications and invention disclosures. Lenovo will receive over 2,000 patents in the deal and has the option to license additional properties from the portfolio directly from Google.

Currently, Lenovo is not a major player in the U.S. smartphone game, but the Chinese firm is making strides in burgeoning markets where mid-tier handset sales are booming. A recent report from research firm Strategy Analytics saw Lenovo's global smartphone shipments hit 13.6 million units during the three months ending in December, up from 9.2 million in 2012. Playing a significant role in the company's success is its relatively low-cost offerings.
post #2 of 235

And Google is up $12 from this news after hours.

 

WTF.

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post #3 of 235
LOL

Perhaps they should have Googled what they were worth before purchasing?
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Smoke me a kipper. I'll be back for breakfast.
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post #4 of 235
Haha. Great ROI. Where's Googleguy?
post #5 of 235

Is this or is this not AppleInsider?

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #6 of 235
Quote:
Originally Posted by sog35 View Post
 

And Google is up $12 from this news after hours.

 

WTF.


Which should tell people something about using Mr. Market to judge how well a company is doing..

post #7 of 235

AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH

post #8 of 235
Let's see what this really means. Will the entirety of the GOOG purchase be unloaded, or just parts like the handset, set-top box, or patent portfolio assets, etc.? If it's all being sold for an outright $9.5 billion loss, shareholders should (but won't) demand heads roll.
For your sake, I hope you're right.
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For your sake, I hope you're right.
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post #9 of 235
I assume Google is keeping some patents or something before offloading it.
post #10 of 235
Funny, because the Nest acquisition was about the same (200M more expensive).

So ... Google traded Motorola Mobility (paid 12.5B) for a thermostat company.

Ouch.
post #11 of 235

If Lenovo can turn around Motorola like they did IBM's personal computer/laptop business, they are going to become a big player in the US market. Samsung better watch out.

post #12 of 235
Quote:
Originally Posted by Carthusia View Post

Let's see what this really means. Will the entirety of the GOOG purchase be unloaded, or just parts like the handset, set-top box, or patent portfolio assets, etc.? If it's all being sold for an outright $9.5 billion loss, shareholders should (but won't) demand heads roll.

 

patents are worthless

they already sold set top box unit

 

what a disaster

 

This is why Apple does make large acquisitions, they RARELY work

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Apple Purchases last 12 months - iPhone 5S (two), iPhone 6, iPhone 6+ (two), iPadAir, iPadAir2, iPadMini2, AppleTV (two), MacMini, Airport Extreme, iPod Classic.
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post #13 of 235

What a fail, LOLz

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post #14 of 235

They wouldn't be Android manufacturers if they weren't losing money and happy about it.

post #15 of 235
Quote:
Originally Posted by Tallest Skil View Post
 

AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH

 

I agree. I was LOL'ing the second I read this on The Verge.

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post #16 of 235

Google up $26 now after hours

 

Step 1: overpay for a company by several BILLIONS of dollars

Step 2: lose a Billion dollars every year operating the company

Step 3: sell the company for a multi billion loss

Step 4: profit

 

WTF

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post #17 of 235

:lol:

 

They should sell it for π billion dollars. ;)

 

What was Eric Schmidt's bit about "adult supervision no longer required"? 

 

 

   Apple develops an improved programming language.  Google copied Java.  Everything you need to know, right there.

 

    AT&T believes their LTE coverage is adequate

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   Apple develops an improved programming language.  Google copied Java.  Everything you need to know, right there.

 

    AT&T believes their LTE coverage is adequate

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post #18 of 235
I didn't think it was a very smart purchase in the first place, and thought the subsequent sell-off of the set-top box division was perhaps a mistake too even tho they got about $2.4B for it. If this story actually has some truth to it I don't know I'd consider this one any smarter even if they're keeping the IP. My initial guess is there's something else, or at least in addition, at play. Then again I'm hardly more qualified than Google execs at deciding what's best for the company. They've managed to make a little money in spite of themselves. 1biggrin.gif

Obviously the rumor details are a bit scant at the moment if there's any fire with the smoke to begin with. Pretty interesting supposition tho.
melior diabolus quem scies
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melior diabolus quem scies
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post #19 of 235
Quote:
Originally Posted by manicakes View Post

Funny, because the Nest acquisition was about the same (200M more expensive).

So ... Google traded Motorola Mobility (paid 12.5B) for a thermostat company.

Ouch.

 

The thing about companies with more money than business sense... They will soon be shed of both.

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GOA

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GOA

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post #20 of 235
Quote:
Originally Posted by sog35 View Post
 

Google up $26 now after hours

 

Step 1: overpay for a company by several BILLIONS of dollars

Step 2: lose a Billion dollars every year operating the company

Step 3: sell the company for a multi billion loss

Step 4: profit

 

WTF

 

Now do you feel better about Apple?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #21 of 235
Amazon barely makes money: stock up.
Googs wastes 12.5 billion and has a negative ROI on Moto: stock up.
Apple makes money hand over fist: stock drops.

Perfect sense!
post #22 of 235
Wow. Talk about an utterly shameless lack of strategy.

Quite predictable, but pathetic nonetheless. As a signal of management quality, this should have sent the stock into a tailspin. But apparently it's Opposite Week.
post #23 of 235

Ha ha ha!  That's the Google way of making money.  They probably figured it's a good deal because it almost pays for the Nest Labs acquisition.  As I once posted, is Google's board made up completely of poodles feeding out of Larry's, Sergei's and Eric's hands?

post #24 of 235
Quote:
Originally Posted by anantksundaram View Post

Wow. Talk about an utterly shameless lack of strategy.

Quite predictable, but pathetic nonetheless. As a signal of management quality, this should have sent the stock into a tailspin. But apparently it's Opposite Week.

 

Bizarro World.

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post #25 of 235
This tied with the fact that Samsung and Google just entered a 10 year cross licensing deal, it looks as though Google will handle more of the software and Samsung will do the hardware. The writing has been on the wall for some time that both Samsung's and Google's mobile future is tied together. Samsung's own mobile OS won't ever get the kind penetration that Android has and Motorola wasn't looking like it would ever catch up to Samsung. With Nokia now becoming a part of Microsoft, the lines in the sand seem to be drawn.
post #26 of 235
Quote:
Originally Posted by jibberj View Post

I assume Google is keeping some patents or something before offloading it.

If this sale is true, my suspicion is that Google was ultimately interested in the patents, not the hardware.

post #27 of 235
Quote:
Originally Posted by Ireland View Post

Is this or is this not AppleInsider?

Excellent point. In any case, this seems like a great deal for Froogle: buy for 12,sell for 2...keep it up, Schmidt!

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post #28 of 235

Actually buying Motorola most likely saved Google as a company. To make a long story short, this week's patent cross license deal between Google and Samsung gave Android validity. Without that it would be an erosion of Google apps on Android as the Android device makers started rolling out their own flavors sans Google licenses and with Apple replacing Google apps on iOS with home grown services, the company would be left out in the cold on mobile. And everything is going mobile. 

post #29 of 235
Quote:
Originally Posted by SpamSandwich View Post

Bizarro World.
Quote:
Originally Posted by SpamSandwich View Post

Bizarro World.
Quote:
Originally Posted by SpamSandwich View Post

Bizarro World.

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post #30 of 235

I remember very well when Google first bought Motorola's division.  Quite a few idiots (which also includes Fandroids) thought that Google had a winner in terms of patents and they were going right after Apple.  Some basement-dwelling-armchair-CEO's in various threads were complaining that Apple should have bought that division to head-off Google.

Well.... as usual, those people are nowhere to be seen on this thread and are being conspicuously quiet.  Where are they?  Looking the other way hoping no one calls you on it?

post #31 of 235
Thus endeth Google's brief flirtation with smartphone hardware.

"Mama, mama, it's harder than I thought it would be . . . "

Perhaps the investor community might finally begin to understand just how good Apple is at what they do (this whole widget approach) and that no one, noooooooo one, even comes close.
post #32 of 235

WHITE ELEPHANT FOR SALE 

(Answers to the name "Motorola Mobility" and "Peanut")

 

Bought in 2012 for $12 billion. Will accept any offer. MUST GO ASAP!

 

LIKE NEW! Pristine Condition. Never used. 

 

- Removed all patents. NOW PATENT FREE!

- Comes with two phone models. All stock still available in storage! Unopened!

- Beautiful, modern logo

- Low maintenance (shell company, easy-cleaning.)

 

CONTACT:

 

Eric T. Mole

https://plus.google.com/+EricSchmidt/posts

post #33 of 235
Quote:
Originally Posted by sog35 View Post
 

Google up $26 now after hours

 

Step 1: overpay for a company by several BILLIONS of dollars

Step 2: lose a Billion dollars every year operating the company

Step 3: sell the company for a multi billion loss

Step 4: profit

 

WTF

 

Step 1: That money is already gone, meaningless in terms of investing, makes for good fodder only.

Step 2: This is exactly why Google is up after hours. Dump a bleeding asset, you make more money.

Step 3: Irrelevant by Step 1, and softened since they already sold part of Motorola for 2.x billion some time ago.

Step 4: yep.

 

Business 101.

I'm not a pessimist. I'm an optimist, with experience.
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I'm not a pessimist. I'm an optimist, with experience.
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post #34 of 235
They cut their losses. Good move.
post #35 of 235
Originally Posted by quinney View Post
They cut their losses. Good move.

 

Should sell YouTube, then.

post #36 of 235

This makes sense of the highly implausible "Samsung making concessions to Google" news (Google is clearly in the worse position in that relationship). Samsung has basically said to Google: "You get out of hardware or we're forking Android." Part of the terms were obviously Samsung dialling back some of the Android changes it showed in CES. So Google gets a couple of articles written about how they're regaining control over Android on Samsung devices as damage control before it drops this bomb.

post #37 of 235
Quote:
Originally Posted by Tallest Skil View Post

Should sell YouTube, then.

But you claim it is a monopoly, why would you sell it then? But in saying that, how is that proof gathering coming along?
post #38 of 235
Quote:
Originally Posted by poke View Post

This makes sense of the highly implausible "Samsung making concessions to Google" news (Google is clearly in the worse position in that relationship). Samsung has basically said to Google: "You get out of hardware or we're forking Android." Part of the terms were obviously Samsung dialling back some of the Android changes it showed in CES. So Google gets a couple of articles written about how they're regaining control over Android on Samsung devices as damage control before it drops this bomb.

Google probably said: you want Maps? Stop frakking with Android. You know, because it's open. Hahaha.
post #39 of 235
Quote:
Originally Posted by anantksundaram View Post

Wow. Talk about an utterly shameless lack of strategy.

Quite predictable, but pathetic nonetheless. As a signal of management quality, this should have sent the stock into a tailspin. But apparently it's Opposite Week.

 

I would say that the loss isn't as great as many on here would think... plus, add the fact that the Moto losses won't be on the books any more... stock goes up.

 

[... and, yes, it appears to be a lack of strategy... maybe they learn fast. They certainly aren't afraid to move quickly.]

Hmmmmmm...
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Hmmmmmm...
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post #40 of 235
Quote:
Originally Posted by Tallest Skil View Post
 

 

Should sell YouTube, then.

 

It's my understanding they are actually able to make money on YouTube now, what with the ads everywhere (both in and outside the videos).

Proud AAPL stock owner.

 

GOA

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