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Motorola Mobility reports Q1 operating loss, says China is holding up closing of purchase by Google

Posted: , by Alan F.

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Motorola Mobility reports Q1 operating loss, says China is holding up closing of purchase by Google
Motorola Mobility announced that it had an operating loss of $121 million for its first quarter. Revenue rose 2% from last year to $3.1 billion. On a GAAP net basis, Motorola Mobility lost $86 million compared to an $81 million loss in the first quarter of 2011. These figures can be manipulated almost any way the company wants to. On a non-GAAP basis the loss for the three month period was $10 million compared with $25 million a year earlier. Cash Flow was positive for the quarter at $98 million and after the end of the quarter, Motorola had $3.5 billion of cash and cash equivalents on hand.

The long lasting Motorola DROID RAZR MAXX

The long lasting Motorola DROID RAZR MAXX

Motorola Mobility shipped 8.9 million handsets during the quarter with 5.1 million of them being smartphones. During the quarter, Motorola Mobility introduced the Motorola DROID RAZR MAXX which is equipped with a massive 3300mAh battery and offers battery life unmatched by other smartphones.

According to Motorola Mobility, it is China that is holding up the closing of its acquisition by Google. Both Motorola Mobility and Google said that it would work with Chinese authorities to get the $12.5 billion deal approved. Motorola Mobility says it hopes to have the deal closed before the end of the first half of this year.
"As previously announced on August 15, 2011, Motorola Mobility and Google Inc. ("Google") (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion.

Motorola Mobility and Google continue to work closely with the authorities in China for approval on the acquisition. The transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements. We continue to expect the transaction to close during the first half of 2012."-Motorola
source: Motorola

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posted on 01 May 2012, 22:12 2

1. eDiesel (Posts: 141; Member since: 17 Mar 2012)


China has google by the cojones

posted on 01 May 2012, 22:50

2. HugeTroller (banned) (Posts: 80; Member since: 27 Apr 2012)


Gg Google, go back to China now for them to approve.

posted on 01 May 2012, 22:55 5

3. mas11 (Posts: 1028; Member since: 30 Mar 2012)


Screw China, if the U.S. and Europe approve who cares what China thinks.

posted on 01 May 2012, 23:37 2

4. JcHnd (Posts: 81; Member since: 30 Apr 2012)


maybe cuz china is one of their biggest clients... they release phones specially for china... so think...

posted on 02 May 2012, 00:02

6. mas11 (Posts: 1028; Member since: 30 Mar 2012)


Yeah but these are two U.S. companies so it be up to the U.S. government. Do you really think the U.S. would have a say if these were two Chinese companies?

posted on 02 May 2012, 00:55

7. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)


exactly, chinese gov't is being really lame here. Motorola should tell them to screw off. Most of the chinese population has a crap buying power anyways so all motorola is losing is low end handset sales which don't generate any profit anyways.

posted on 03 May 2012, 19:28

10. JcHnd (Posts: 81; Member since: 30 Apr 2012)


Did nokia made any profit loss with the nokia 1100?... gotta think again... low wages means low price handsets sold mostly in countries with very large populations like china or russia... I think if motorola ignore china maybe they'll ban the brand from their country... now THAT is a lose in profit for them...

posted on 02 May 2012, 00:02

5. kanagadeepan (Posts: 667; Member since: 24 Jan 2012)


May look like that... But really China is tooo big to ignore and Motorola has great market in China with lower end DualSIM (Cdma+Gsm) handsets and even higher end phones likr 4+variants of Razr_Maxx (13Mpx + HD screen remember)...

Further Motorola is NOT a problem for Chinese government, but they don't like the open-nature of Google (remember the search restrictions, maps, etc)....

But imho, they will approve the deal finally... If they are NOT willing (Chinese govt/authority), they would have stopped it much much earlier (than even EU and US approval)... They are just trying to show Google that "Google depends on them and NOT the other way around" and hence all this delay and tension creation... Further there is NOTHING much (imho) for them (Chinese govt/authority) to loss if the deal goes through...

Let us wait peacefully for the drama to complete...

posted on 02 May 2012, 02:23

8. Mxyzptlk (limited) (Posts: 3510; Member since: 21 Apr 2012)


Maybe it's a sign that Motorola should focus on quality over quantity, which they so desperately need right now. A partnership with Google won't really do much, what they need to do is add value.

posted on 02 May 2012, 09:40

9. Tux4g63 (Posts: 118; Member since: 21 Oct 2011)


I am surprised no one has looked at the obvious here. China is probably holding up the deal because Apple has an entrenched presence already there. AND I would not be surprised if there was some backdoor politics going on with Apple leveraging their present existing relationship to hold up the Chinese government from signing off.

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