Here’s the most important part of the piece:
Lenovo is buying Motorola Mobility from Google. This is the division within Google that the company purchased in 2011 for $12.5 billion.
The terms of the deal have yet to be revealed but we’re hearing the price was near $3 billion.
Insane to hear. Google spent 12.5 billion for Motorola, despite how hard it was failing. Everyone knew it was for patents, and a chance to show off how awesome Android could be by Google being able to own the Stack, like Apple. But it’s been utter failure on both parts. Google sued Apple, and is getting sued by Apple, and is losing badly (not that it surprised anyone). And the Motorola has been losing not under $200 a million a quarter for Goggle since they were bought. Including this last “big holiday” quarter.
It all come down to Google spending 12.5 billion and selling for under 3 billion. Ouch.
Google just bought Nest for more than they sold an entire smart-phone company for. Strange days but it’s likely better for Android partners who want to jump ship rather than compete with Google’s own hardware. This is opposite of Microsoft who almost doesn’t exist in Mobile, but who is switching to controlling their stack (again, trying to follow Apple, like Google did with Motorola). Will Microsoft succeed where Google failed? Or, will they end up selling Nokia as they see more and more long-time hardware partners sell Android and Chrome-books and ditch the windows platform. It was unheard of, until Chrome-books this last quarter made a significant dent in Windows partner-base. With Google Buying ex-Apple Exec Tony Fadell, who is incredible at Hardware, I can only see Chrome-books getting better (although they need everyone’s internet to get better to be of any real use).