from the but-of-course dept
Well, that little pipedream is now over, with Google selling off the handset business to Lenovo for $2.91 billion. Some are pointing out the rather massive difference between this and the initial purchase price of $12.4 billion, but that leaves out a lot: mainly, Google is keeping the patents and just licensing them back to the company. In 2012, Google claimed that it valued the patents at $5.5 billion. Also, it got $2.9 billion in cash from Motorola, and I'd imagine that's not going to Lenovo too... Instead, at the time of the acquisition, Google said it valued Motorola's customer relationships at $730 million and "other net assets" at $670 million -- and then had another $2.6 billion in goodwill (more or less the premium Google had to pay to get Motorola to sell). Given that, the sale isn't a huge "loss", though it does make Google look kind of silly for pretending it was really in the hardware business for a bit.
In the end, just as we predicted at the beginning, this is a story of the silly things a tech company is forced to do these days because of our stupid patent laws. The end result here pretty much confirms it all. Google shelled out $12.4 billion for a bunch of patents and hung onto a hardware business it never really wanted, and which it has now discarded. Without the pointless patent battles, it's unlikely Google ever would have bothered. So: would we be better off in a world where Google had actually been able to invest that money into making better offerings? Or where Motorola's investors got it?