Insider claims Google bought a "dysfunctional" Motorola

Google made a surprise announcement this morning when it revealed plans to acquire Motorola for $12.5 billion. But will Google get its money's worth in this rather risky purchase?

The Business Insider claims to have its own unnamed source in the mobile phone industry who pretty much slams the deal and Motorla in general. The source points out that Motorola is only expected to sell 20 million smartphones with Google's Android operating system inside in 2011. By contrast, rival smartphone makers HTC is expected to sell 50 million Android phones and Samsung should sell a whopping 83 million Android phones this year. It also points out that Motorola Devices, which makes smartphones and tablets like the Motorola Xoom, is currently losing money for the company.

The same industry source claims that Motorola is "dysfunctional" as it stands right now and that Google's claims that it Motorola will be a stand alone division with no real input from Google is "nonsense." Motorola has also been dealing with issues like releasing products on time.  A prime example is the current status of Motorola's long awaited Bionic 4G phone. The phone was first announced back in January at CES for release later this spring but the company has had issues with putting in the promised 4G technology. It's currently expected to be launched in September, several months late.

The Google-Motorola deal could also face opposition from anti-trust regulators. News.com reports that companies like Microsoft and Apple will almost certainly will raise their concerns about the deal with government officials.

 

 

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37 Comments

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with their crappy and overpriced product no wonder why... they should step the game up in their cellphones less quantity and more quality and maybe that would helped. Lets hope google do something to save motorola. But giving the course maybe what google wants its that motorola go bankrupt and just stay with the patents....

eilegz said,
with their crappy and overpriced product no wonder why... they should step the game up in their cellphones less quantity and more quality and maybe that would helped. Lets hope google do something to save motorola. But giving the course maybe what google wants its that motorola go bankrupt and just stay with the patents....

I don't think Motorola could survive with less quantity... They're bleeding at the seams as it is...

It's no surprise Motorola Mobility is bleeding money, they lost so much last quarter and it's not going to stop. Google more or less bought another (at this time) money pit. If the patents are worth it to them then fine, but if not then ouch. Only time will tell how this turns out.

GP007 said,
It's no surprise Motorola Mobility is bleeding money, they lost so much last quarter and it's not going to stop. Google more or less bought another (at this time) money pit. If the patents are worth it to them then fine, but if not then ouch. Only time will tell how this turns out.

Yeah, exactly. Motorola hasn't been a viable competitor for a VERY long time and has repeatedly been mismanaged to the point of ruin. I honestly don't see Motorola lasting very long under Google's ownership. I'm predicting that Google raids their patent portfolio and shuts them down in the not so distant future.

GP007 said,
It's no surprise Motorola Mobility is bleeding money, they lost so much last quarter and it's not going to stop. Google more or less bought another (at this time) money pit. If the patents are worth it to them then fine, but if not then ouch. Only time will tell how this turns out.

+1. 'insider claims', I dont think you need an insider to see that motorola isn't doing well.

GP007 said,
It's no surprise Motorola Mobility is bleeding money, they lost so much last quarter and it's not going to stop. Google more or less bought another (at this time) money pit. If the patents are worth it to them then fine, but if not then ouch. Only time will tell how this turns out.

Something similar could be said of the Microsoft/Nokia deal, but I have very high hopes for the Nokia WP7. I'm sure Google will be smart about their acquisition.

News.com reports that companies like Microsoft and Apple will almost certainly will raise their concerns about the deal with government officials.

As if Apple has a leg to stand on after the **** they pulled in Germany.

Raze said,
wth happened? Opera mobile is acting hyper...... sorry about the multiple postings!

Might not be on your end, look at the number of comments. all you posts still count as 1 all together. I think it migt be an error on Neowin.

Raze said,
wth happened? Opera mobile is acting hyper...... sorry about the multiple postings!

You spammer :-)

and i totally agree with your 12 posts.......

why is this insider guy not thinking clear here...
Google bid 3.5B Nortel Novel patents which is only 1/3rd of the total patent that Motorola mobility holds now.... If you calculate that's 10.5 billion... and I am sure most of the cost is for the assets rather than patent here and that should be about 6 billion atleast(Its a guess)....

Doli said,

Might not be on your end, look at the number of comments. all you posts still count as 1 all together. I think it migt be an error on Neowin.

+1

The purchase would give Google ownership of Motorola Mobility's 17,000 patents (and additional 7000 pending), a strong defense against Apple/Microsoft/RIM/Oracle lawsuits.

Raze said,
The purchase would give Google ownership of Motorola Mobility's 17,000 patents (and additional 7000 pending), a strong defense against Apple/Microsoft/RIM/Oracle lawsuits.

Alright, alright! We got that the first time, no need to spam us.

The purchase would give Google ownership of Motorola Mobility's 17,000 patents (and additional 7000 pending), a strong defense against Apple/Microsoft/RIM/Oracle lawsuits.

Raze said,
The purchase would give Google ownership of Motorola Mobility's 17,000 patents (and additional 7000 pending), a strong defense against Apple/Microsoft/RIM/Oracle lawsuits.

So why hasn't Motorola used those to defend itself from their current batch of lawsuits going on? I'm just wondering here, because if they had something to fight back with and try to cut a deal with, wouldn't they have used them? Doesn't seem like they have at all and instead decided to sell the ship before it was fully underwater.

GP007 said,

So why hasn't Motorola used those to defend itself from their current batch of lawsuits going on? I'm just wondering here, because if they had something to fight back with and try to cut a deal with, wouldn't they have used them? Doesn't seem like they have at all and instead decided to sell the ship before it was fully underwater.

read the end of this article.... you should understand.... Motorola asserted 18 patents against Apple while apple only did 6 patents.... this is the step towards doing a deal....

GP007 said,

So why hasn't Motorola used those to defend itself from their current batch of lawsuits going on? I'm just wondering here, because if they had something to fight back with and try to cut a deal with, wouldn't they have used them? Doesn't seem like they have at all and instead decided to sell the ship before it was fully underwater.


Have these lawsuits been settled or are they still making their way through the courts.

GP007 said,

So why hasn't Motorola used those to defend itself from their current batch of lawsuits going on? I'm just wondering here, because if they had something to fight back with and try to cut a deal with, wouldn't they have used them? Doesn't seem like they have at all and instead decided to sell the ship before it was fully underwater.


sorry didnt post the link

http://www.thestreet.com/story...cm_pla=Feed&cm_ite=Feed

Jebadiah said,
LOL Troll. Apple has $80 billion in cash. That's ~3x what Google has now.

Is that the same as what google has in assets though, the only thing that a business sitting on a lot of cash says is that they're milking their consumer base too much and not investing in as much R&D as they should be. The only thing apple is spending money on at the moment is lawyers to try take out all the people who are competing fairly.

9point6 said,

Is that the same as what google has in assets though

No, in fact it's substantially more.

According to Google's 10Q filing (2 weeks ago), Total current assets sit just under $46.5b
They have 9b in "property and equipment". If you ask google total up everything they own, all of their cash, all of their investments, their source code, even the brandname, logo, and customer loyalty they'll say $64,861,000,000. You can find that number as line #17 on their 10Q filings.

the only thing that a business sitting on a lot of cash says is that they're milking their consumer base

Isn't that what they're supposed to do?

I'm curious how your cognitive dissonance works when you consider Google is sitting on a 35 billion dollar pile of cash and short term investments (see their 10Q filed July 2011).

Apple sitting on 80 billion today is apple screwing their customers. Apple sitting on 35 billion a year and a half ago is also evil because they were screwing their customers. Google sitting on 35 billion today…not evil…because…well it's google.

too much and not investing in as much R&D as they should be.

You seem to be confusing the roll of business with the roll of Universities, Governments, and Charities.

Business invests in R&D only so far as it can be used to generate more profit. In Apple's case they seem to be doing just fine with their R&D expenditure as it is.

Companies don't exist to serve you, or the public good.

evn. said,

Apple sitting on 80 billion today is apple screwing their customers. Apple sitting on 35 billion a year and a half ago is also evil because they were screwing their customers. Google sitting on 35 billion today…not evil…because…well it's google.


I can feel ur pain.

U there, using ur lag, slow and "snoopy" droid/google screaming apple is evil

don't foget, g00gle is just a JOKE

evn. said,

Isn't that what they're supposed to do?

I'm curious how your cognitive dissonance works when you consider Google is sitting on a 35 billion dollar pile of cash and short term investments (see their 10Q filed July 2011).

Apple sitting on 80 billion today is apple screwing their customers. Apple sitting on 35 billion a year and a half ago is also evil because they were screwing their customers. Google sitting on 35 billion today…not evil…because…well it's google.


You seem to be confusing the roll of business with the roll of Universities, Governments, and Charities.

Business invests in R&D only so far as it can be used to generate more profit. In Apple's case they seem to be doing just fine with their R&D expenditure as it is.

Companies don't exist to serve you, or the public good.

Having that much cash sitting around NOT being used should be returned to shareholders as dividends, otherwise use the money for something. Apple could be buying other companies, or pouring more money into R&D, but not just accumulating cash for (seemingly) no good reason.

Money not being used is almost as bad as wasting money.

wyoung76 said,

Having that much cash sitting around NOT being used should be returned to shareholders as dividends, otherwise use the money for something. Apple could be buying other companies, or pouring more money into R&D, but not just accumulating cash for (seemingly) no good reason.

With inflation the dollar looses its value. So Apple will loose money if they don't do anything with it.

Money not being used is almost as bad as wasting money.

wyoung76 said,
Having that much cash sitting around NOT being used should be returned to shareholders as dividends, otherwise use the money for something.

Do you feel the same way about Microsoft's 35b cash pile, Google's 57b pile, Samsung's 22b pile? Is it only bad when Apple sits on 35b (like they were last Christmas)?


Money not being used is almost as bad as wasting money.

As a proportion of market cap, Apple's pile of cash is in the same league (±3%) of Google, Microsoft, and Samsung. Interestingly, Apple is valued almost as much as those three combined. Maybe they're doing something right, investors seem willing to pay handsomely for a piece of that action.

evn. said,

...You seem to be confusing the roll of business with the roll of Universities, Governments, and Charities...

You seem to be confusing the word roll with role!

i don't get this Anti-trust rubbish, not like there forcing people to use Motorola, or closing it down, i think they brought it, they can do what they like !

badsey said,
i don't get this Anti-trust rubbish, not like there forcing people to use Motorola, or closing it down, i think they brought it, they can do what they like !

Yeah, there is a big difference between this purchase and that of ITA Software (Which really shouldn't have been approved...).

M_Lyons10 said,

Yeah, there is a big difference between this purchase and that of ITA Software (Which really shouldn't have been approved...).

i think if a company wants to by another company that's fine, i think what Apple are doing is wrong, trying to sue left right and centre and blocking devices from the EU

badsey said,

i think if a company wants to by another company that's fine, i think what Apple are doing is wrong, trying to sue left right and centre and blocking devices from the EU

I would tend to agree with you except for when said purchase hurts the consumer, creates monopolistic entities, and limits competition... In these such situations, sometimes a purchase isn't just a purchase and the government needs to realize that.