Analyst says after failing to help with patent cases, Google overpaid for Motorola
Last week, the ITC ruled that Apple's patent for a proximity sensor was not infringed on by Apple. Motorola claimed that Apple's defense of prior art was invalid since that was for a device using buttons and Motorola's patent covered a touchscreen device. Motorola will probably appeal the ruling.
The number of cases where Google could not use Motorola's patents to its advantage have clearly made it seem that Google had overpaid for Motorola. According to Erin-Michael Gill, managing director of MDB Capital Group LLC, an investment bank that specializes in patent issues, "the perceived value of the portfolio is clearly less" than what Google paid, said. As a business, the deal has not been a winner either. Motorola Mobility's 2012 revenue of $4.14 billion, was about 8 percent of Google’s total sales. Motorola posted $1.1 billion in losses last year.
Google remains positive about Motorola's future.The company has become known for its Motorola DROID RAZR MAXX and Motorola DROID RAZR MAXX HD models, both with a 3300mAh battery that allows power users to run their phone more than one day on a single charge. Then there is the rumor involving the Motorola X which remains a mystery. The latest we've heard is that the device will have 20 colors that buyers can select from.
1. UrbanPhantom (Posts: 949; Member since: 30 Oct 2012)
I think Google should have bought Nokia instead of Motorola Mobility, but it is possible that deal was never going to be on the table. In any event, Microsoft now has Nokia to champion Windows Phone, and is making full use of them even without having made a direct purchase...
3. lyndon420 (Posts: 1785; Member since: 11 Jul 2012)
A direct purchase no, but ms pumps millions into Nokia to keep them at ms's beck and call.
7. Fossi (Posts: 3; Member since: 23 Apr 2013)
Main thing stands Nokia isn´t for sale and hasn´t been for sale.. So stop with the trolling that Microsoft controls Nokia.. That last sentence goes to everyone
10. Hemlocke (unregistered)
Nokia is, and has been, for sale. Apple, Google, or anyone else, could just swoop in and buy them today. That is always a scenario when you are a publicly traded company.
15. InspectorGadget80 (Posts: 6736; Member since: 26 Mar 2011)
too give u a history note it was MOTOROLA who invented the cell phone.
2. jinxed (Posts: 107; Member since: 10 Jan 2013)
wont the wireless standards some under Motorola Solutions? And did Google buy both Motorola Solutions and Mobility ?
4. FlushGordon (unregistered)
Jusr wondering why the heck Google is using SAMSUNG, ASUS and LG as their NEXUS flag bearer instead of MOTOROLLA? doesn't make sense
16. DFranch (Posts: 140; Member since: 20 Apr 2012)
because if they use Motorolla for the nexus, then it may look like Google is showing favortism to Motorolla. They don't want any of their partners to think they are getting sloppy seconds, they might re-think their investment in Android.
5. StreetNerd (Posts: 722; Member since: 08 Dec 2010)
The last 12 years they havent sold any moto phones here in the Netherlands :')
6. roscuthiii (Posts: 1873; Member since: 18 Jul 2010)
Moto was bought as a means of patent protection against suits, not really for going on the patent offense. Could be wrong but the listed suits were those already filed (and/or counter claims) my Moto before the purchase .
Analysts... half of what come out of their mouths is wrong, half is just BS.
Also, "the ITC ruled that Apple's patent for a proximity sensor was not infringed on by Apple."???
Maybe make one of those Apples a Moto instead. I'll even let you pick which one, I'm sure you can get it right.
8. JMartin22 (Posts: 1245; Member since: 30 Apr 2013)
Given how hostile their competitors were... err are; I can't blame Google for trying to take a procurement in investing their model in an increasingly litigious environment. A shame it seems to be taking an opposite effect.
9. joey_sfb (Posts: 3244; Member since: 29 Mar 2012)
I rather Google put in more effort in motorola r & d and manufacturing! Company always lead thru these means.
Have you ever seen a technological company lead thru persuasive legality?
11. Aeires (unregistered)
Analysts, have any of them gotten anything right?
12. lubba (Posts: 1311; Member since: 17 Jan 2011)
@UrbanPhantom... For the last 3 year, I never heard any news anywhere that Nokia is for sale. I did though hear couple of weeks ago Nokia made the right choice in choosing WP. Isn't that great! MS and Nokia are business partners. There is no conspiracy theory. I do believe though that if Nokia chose Android, they would have sunk fast and would have been put up for sale. Who would buy them, who knows?
14. InspectorGadget80 (Posts: 6736; Member since: 26 Mar 2011)
I think it was a wise choice. we don't want too see Motorola go bankrupt or loose too the competition. their still a good way Motorola can come back too the top like they did with their RAZR phones years ago. Sometimes I think analyst are a bunch of numbskulls. They think they know whats right cause they think they can predict in the future but their wrong
17. techloverNYC (Posts: 422; Member since: 20 Nov 2012)
MOTOROLA, Blackberry, and Nokia.....any1 besides me remember the glory day.........