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Thursday, January 30, 2014

Lenovo Buying Motorola?


Google bought Motorola for $12.5 Billion in May 2012. Sold the set top division for $2.35 Billion. And Google keeps the smart phone patents, plus $7 Billion in tax benefits. And Google is selling the rest of Motorola to Lenovo for $2.91 Billion.

This is actually a good move for Google.

Why you may ask?

Google makes money by selling ads. More and more ads are being sold on mobile devices. Google made in 2013 $8.3 Billion Dollars.

The reason that Google gives away the Android operating system, is so Google makes huge the majority of their money from advertising. Making hardware current is a low margin business, that is not Google core business. With the patents from Motorola, Google is in a better position with Apple to protect their mobile advertising. Apple is focused on not repeating with the iPhone, what happened with the MacOS and Windows. Windows copied the MacOs, and did a better job of marketing it and won the PC operating system wars. Yes, I know about Xerox PARC and Apple. Apple is doing everything they can legally, to make sure competitors are not able to copy the iPhone and Operating System, IOS.


Google Selling Motorola at Multibillion-Dollar Loss - Wired

Motorola Mobility Isn't A Disaster For Google, It Only Cost Them $1.5 Billion - Forbes

Google to take home half of $16.65 billion worldwide mobile ad market -  http://www.emarketer.com

The Xerox PARC Visit - Stanford Making the Macintosh

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