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.
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.
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?
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.
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.
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.
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.]
From reading the HN thread it looks like Google's total loss was about $1B and they retain control of a significant number of patents, who knows how valuable they could be: https://investor.google.com/releases/2014/0129.html
A shame really, although Lenovo could be a good driver, I just hate all the crap you see bundled onto Samsung phones. Lets hope Motorola stick with their current strategy, Moto X and G are both lovely phones.
Comments
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.
Excellent point. In any case, this seems like a great deal for Froogle: buy for 12,sell for 2...keep it up, Schmidt!
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.
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?
"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.
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
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.
Should sell YouTube, then.
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.
But you claim it is a monopoly, why would you sell it then? But in saying that, how is that proof gathering coming along?
Google probably said: you want Maps? Stop frakking with Android. You know, because it's open. Hahaha.
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.]
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).
Having absolutely nothing to do with the ability to sell it.
For the reason stated in the thread, which you’d know if you had actually read the post in question or cared anything about what we’re discussing.
Why not just shut up and go read the post wherein I already showed that? Thanks.
From reading the HN thread it looks like Google's total loss was about $1B and they retain control of a significant number of patents, who knows how valuable they could be: https://investor.google.com/releases/2014/0129.html
A shame really, although Lenovo could be a good driver, I just hate all the crap you see bundled onto Samsung phones. Lets hope Motorola stick with their current strategy, Moto X and G are both lovely phones.
it is a lovely picture, but it doesn't prove anything
Impressively innovative.
Holds with the old joke: the way to make $2.91 billion? by a loser handset maker for $12.5......