Another American company(with a manufacturing presence here even) lost to overseas clutches. This is a DEEP wound here Google. I will not forgive you for this one.
It was not a bad acquisition. Google likely wanted the patents as the smart phone landscape has turned in a patent war zone. I bolded the below from the article.
There was no doubt Google bought Motorola for the Patents, they attempted to cover up that fact, but the regulation bodies over seeing a sales like this put lots of restriction on Google so they were force to try and make a go of it. They were also force to sell the home business as soon as they could find a buyer. Keep in mind who's idea it was to buy motorola is was the same idiot who have been told to go play with robots for a while.
The patents have really become worthless at this point to google.
Which re-enforces my point of them being Wall Scum, they are playing favourites with Google! If what you say is true that Motorola was running at a loss for Google, than their loses are greater than $9 billion! So with that much red ink on the balance sheet, no matter how they try to spin it later on their next quarterly, this is still a HUGE loss that demonstrates a tremendous mistake by Google's senior management, and yet they are being rewarded for their stupidity!
The purchase of Motorola was done in 2012. That money is already gone. And the loss is closer to 3-4 billion all together considering other sales, while retaining their patent portfolio. It's a loss but now is less of a loss and will no longer continuing to be one.
Googs wastes 12.5 billion and has a negative ROI on Moto: stock up.
Apple makes money hand over fist: stock drops.
Perfect sense!
Its obvious the large stock holders want Google to split. If Yahoo did the same exact thing its stock would have lost exactly the amount Google gained. Huge investors have their reasons and of course its to make more $$$$.
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?
Someone dig up the suspiciously identical sounding press releases from all of Google's Android partners who were heralding the Motorola purchase as a wonderful move to "protect innovation" (or some such nonsense).
Another American company(with a manufacturing presence here even) lost to overseas clutches. This is a DEEP wound here Google. I will not forgive you for this one.
Perhaps the deal will be blocked or have conditions applied by the US government. I'm not sure but such a move by Google could also be subject to approval by their shareholders. It will be awhile before it is really a done deal.
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.
No, that's nowhere close to business 101.
You might consider repeating the course, and maybe with a different instructor.
Or maybe you're just confusing it with Burning Capital thru Poor Management & Planning 101?
Wall St. drunk on Android Kool-aid is neither a realistic nor long term measure of actual corporate health. It's purely a low level, media driven fad. "Paging Mr. Bieber... Mr. Bieber please pick up the white courtesy phone on the Exchange floor..."
Also I think your seat license for declaring "irrelevant" might have expired.
This is disappointing. I had hoped that they would use Motorola to stabilize Android and create a killer phone. I guess they just didn't have it in them.
This could be one step closer to them abandoning Android and focusing on Chrome OS.
Maybe some of those patents are really worth the price they paid for Motorola.
It's only a one or two billion dollar loss and Google dumps a money loser... I'd be a happy GOOG shareholder at this point.
But if Google keeps it up, you won't be a happy shareholder in 5-10 years. Wall St. daily fluctuations are essentially driven by scatter brained babies reading USA Today or the equivalent but less colorful Journal. No real intellectual illuminati in that crowd.
That's why long term investing is the much more tried and true method of gambling for corporate pink slips.
But if Google keeps it up, you won't be a happy shareholder in 5-10 years. Wall St. daily fluctuations are essentially driven by scatter brained babies reading USA Today or the equivalent but less colorful Journal. No real intellectual illuminati in that crowd.
That's why long term investing is the much more tried and true method of gambling for corporate pink slips.
How is it only a one two billion loss? I thought most of MM patents were FRAND. How can they be that valuable?
If Google figures that the remaining patents is worth the 8 billion that they've lost on the moto acquisition so far, then that patent portfolio is the most expensive fig leaf ever in the history of human civilization.
Most of the patents are worthless and they lost a decision to Microsoft recently where they tried to get Billions for royalties but the court only gave them a few million. Lets just be generous and say the patents are worth $1 Billion
Motorolla was losing about a billion dollars a year from operations.
This does not even count the legal fees to make the acquistion and selling the company. Also labor cost, severance costs, SEC costs, ect. That could easily be another one hundred to two hundred million dollars.
Total loss is $5,400,000,000. Google only made $10B in fiscal year 2012. So the loss basically wiped out half of year of profits.
Now try to spin that as being 'a small loss'.
I've seen how well you've done in other areas on this forum.
I'll wait until someone from Bloomberg, WSJ, Fortune, NYT or some other actually knowledgeable person says otherwise. Then look at all the fun you'll have quoting from the publication.
Comments
Another American company(with a manufacturing presence here even) lost to overseas clutches. This is a DEEP wound here Google. I will not forgive you for this one.
How is it only a one two billion loss? I thought most of MM patents were FRAND. How can they be that valuable?
1. Tax losses
2. Money acquired on acquisition
3. Sale of set top boxes (plus 15% stake in Arris)
4. Remaining patent valuation
5. Sale to Lenovo
There was no doubt Google bought Motorola for the Patents, they attempted to cover up that fact, but the regulation bodies over seeing a sales like this put lots of restriction on Google so they were force to try and make a go of it. They were also force to sell the home business as soon as they could find a buyer. Keep in mind who's idea it was to buy motorola is was the same idiot who have been told to go play with robots for a while.
The patents have really become worthless at this point to google.
Dude, that's YOUR mum!
I wonder how much Nest will resell for...
Which re-enforces my point of them being Wall Scum, they are playing favourites with Google! If what you say is true that Motorola was running at a loss for Google, than their loses are greater than $9 billion! So with that much red ink on the balance sheet, no matter how they try to spin it later on their next quarterly, this is still a HUGE loss that demonstrates a tremendous mistake by Google's senior management, and yet they are being rewarded for their stupidity!
The purchase of Motorola was done in 2012. That money is already gone. And the loss is closer to 3-4 billion all together considering other sales, while retaining their patent portfolio. It's a loss but now is less of a loss and will no longer continuing to be one.
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!
Its obvious the large stock holders want Google to split. If Yahoo did the same exact thing its stock would have lost exactly the amount Google gained. Huge investors have their reasons and of course its to make more $$$$.
Someone dig up the suspiciously identical sounding press releases from all of Google's Android partners who were heralding the Motorola purchase as a wonderful move to "protect innovation" (or some such nonsense).
Is that the SpamSandwich version of 'a fool and his money are soon parted'?
Disappointing to the highest degree.
Another American company(with a manufacturing presence here even) lost to overseas clutches. This is a DEEP wound here Google. I will not forgive you for this one.
Perhaps the deal will be blocked or have conditions applied by the US government. I'm not sure but such a move by Google could also be subject to approval by their shareholders. It will be awhile before it is really a done deal.
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.
No, that's nowhere close to business 101.
You might consider repeating the course, and maybe with a different instructor.
Or maybe you're just confusing it with Burning Capital thru Poor Management & Planning 101?
Wall St. drunk on Android Kool-aid is neither a realistic nor long term measure of actual corporate health. It's purely a low level, media driven fad. "Paging Mr. Bieber... Mr. Bieber please pick up the white courtesy phone on the Exchange floor..."
Also I think your seat license for declaring "irrelevant" might have expired.
And Google is up $12 from this news after hours.
WTF.
Yep. Google loses $9 billion in the deal and the stock is up. Apple has a record quarter and they tank.
This could be one step closer to them abandoning Android and focusing on Chrome OS.
Maybe some of those patents are really worth the price they paid for Motorola.
It's only a one or two billion dollar loss and Google dumps a money loser... I'd be a happy GOOG shareholder at this point.
But if Google keeps it up, you won't be a happy shareholder in 5-10 years. Wall St. daily fluctuations are essentially driven by scatter brained babies reading USA Today or the equivalent but less colorful Journal. No real intellectual illuminati in that crowd.
That's why long term investing is the much more tried and true method of gambling for corporate pink slips.
But if Google keeps it up, you won't be a happy shareholder in 5-10 years. Wall St. daily fluctuations are essentially driven by scatter brained babies reading USA Today or the equivalent but less colorful Journal. No real intellectual illuminati in that crowd.
That's why long term investing is the much more tried and true method of gambling for corporate pink slips.
Why, I didn't know that.
Thank you for your opinion.
AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH
I couldn't stop laughing either.
How is it only a one two billion loss? I thought most of MM patents were FRAND. How can they be that valuable?
If Google figures that the remaining patents is worth the 8 billion that they've lost on the moto acquisition so far, then that patent portfolio is the most expensive fig leaf ever in the history of human civilization.
Total BS Island Hermit. Show me your calculations:
Purchase price $12.5 B
Sold set top box unit for $2.3 billion (stock and cash)
http://money.cnn.com/2012/12/20/technology/google-cable-box-motorola/
Sold phone business for $3 billion
Most of the patents are worthless and they lost a decision to Microsoft recently where they tried to get Billions for royalties but the court only gave them a few million. Lets just be generous and say the patents are worth $1 Billion
http://www.techdirt.com/blog/wireless/articles/20110831/01030115745/are-any-patents-google-got-with-motorola-mobility-any-good.shtml
Motorolla was losing about a billion dollars a year from operations.
This does not even count the legal fees to make the acquistion and selling the company. Also labor cost, severance costs, SEC costs, ect. That could easily be another one hundred to two hundred million dollars.
12.5 cost
-2.3 sell set top business
-3 sell phone business
-1 value of patents
1.0 operational losses under google
total = 7.2
google tax rate is 24%
https://investor.google.com/earnings/2013/Q2_google_earnings.html
Total loss is $5,400,000,000. Google only made $10B in fiscal year 2012. So the loss basically wiped out half of year of profits.
Now try to spin that as being 'a small loss'.
I've seen how well you've done in other areas on this forum.
I'll wait until someone from Bloomberg, WSJ, Fortune, NYT or some other actually knowledgeable person says otherwise. Then look at all the fun you'll have quoting from the publication.
Originally Posted by sog35
12.5 cost
-2.3 sell set top business
-3 sell phone business
-1 value of patents
1.0 operational losses under google
According to the HN thread it's more like this:
Total: $2.17 Billion Loss