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Lenovo Buys Motorola From Google For Only $3 Billion

 

The biggest news of yesterday has come and gone and now we can look at this whole situation rationally. When i first saw a random person tweet that Lenovo was to buy Motorola from Google for $3Billion I did a double take. There was an instant feeling of shock and I kind of felt let down. I have come to love the Blur free Motorola devices, and Google had done so much to turn this mobile brand completely in a new direction. These devices had been some of the first to receive updates, even some of the older devices. The purchase of a Motorola device with Google backing had become somewhat of a no brainer since we knew that these devices would remain mostly AOSP and would be updated on a regular basis. I couldn’t understand WHY!?

Then we look at what Google payed for Motorola and the questions became even greater. Why would Google offload a company that they payed $12 billion for at such a low rate. This didn’t make much sense initially. A few people made mention of the fact that Google also sold the set top box portion of Motorola Mobility for another $3Billion putting the total loss at only $6Billion. This kind of loss was still baffling considering what they had done with Motorola. Obviously they bought a siv of a company that was on its last leg, and made it a leader in the technology business. Then they turned around and sold it for half price.

We have to remember “why” Google bought Motorola in the first place. This was nothing more than a giant patent acquisition to put them ahead of the curve in the Google/Apple patent war.  With the sell of Motorola they lose the patents and all of the employees and talent they had invested in with Motorola. Why would they give all of this up? Apparently Samsung and Google had a peace meeting at CES. According to Re/code  Samsung agreed to ditch the new MagazinUX in favor of showcasing Google apps including the Play Store. Part of the deal is that Google would stop making hardware and quit competing with Samsung. What we may end up with here is a new partnership between Samsung and Google where the two companies work closely together. Samsung making the hardware, Google providing the software. While we won’t see the disappearance of Touchwiz anytime soon, we may very well see the custom UI toned down.

What are your thoughts. Will you be purchasing a Lenovo Motorola device? Or will you put your money into the company that Google seems to be partnering with?

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  • Timothy Warne Jr

    Honestly I’m so displeased I’m thinking of going to Apple now. Google had got me excited with the whole assembled in the USA thing and resurrecting a american phone manufacturer. Though now there selling it off to a Chinese company!!! I guess I’ll go with the designed in California slogan now. I started with an OG droid on day 1 as my first android and now I’m Ending it with a Moto X. Goodbye Google.

    • Anonymous

      Say tim….. what are you talking about? The whole reason behind Lenovo buying Motorola is so they can use it to springboard both computers and mobile devices in the US directly. They can’t abandon that 7yr contract for assembly in Texas. Nor would they want to. They get tax and duty free write offs for having devices assembled here in US in Texas FTZ’s (Foreign Trade Zone).

      Just like Samsung does and how they give Apple the opportunity to save huge sums on processors and memory fabricated in Samsung’s FTZ. Any more Samsung’s design presence in Silicon Valley makes Apple’s puny R&D spending look like an amateurish by comparison!

      Samsung is right now spending more in Silicon Valley than Apple is in building their Space Donut Headquarters! ……..and Moto’s R&D and Design labs are going anywhere!

  • Jeremy Sheehan

    Motorola also had almost $3bn in cash on hand as well when Google bought them. Google also kept Moto’s advanced technology department (probably added it to Google X Labs). One of the articles I read said that Google might have lost less than $1bn on the transaction. As displeased as I am with this transaction, I think that Google certainly came out on top. And with Lenovo’s current stance on the transaction, it seems like they intend to let things be for now. If they continue to do that, the same Motorola we’re currently seeing will probably be around to stay for a while.

    • Anonymous

      Actually Motorola can be better, because it’s a Hardware company buying a hardware company. Google was great for a time by bankrolling Moto into utilizing some of their fantastic engineering and design talent. The good Google did in the way of slimming down Moto’s operations so they weren’t so top heavy in management hasn’t been fully realized yet. They both actually benefit from this transaction!

      Lenovo is one of Google’s leading OHA partners already slated to be the company to bring out the last Nexus Phone. So in effect, Google is ensuring that the bar by which they raised Android to new levels of innovation will continue to do so in Lenovo. The change over of IBM’s Thinkpad Desktops resulted in making Thinkpad a premium brand greater than IBM was able to do. Lenovo then became the #1 or #2 Desktop Computer company in the World. Expect Motorola to now have a better future. Neither company would have made this decision without thinking they could each benefit from it!

  • Anonymous

    The most powerful manufacturer UI showcasing Samsung’s own hardware while running Android OS underneath and anyone that wants to see Touchwiz toned down is totally LOST IN OUTER SPACE OUT OF OUR OWN GALAXY!!!

    1st Tell me what mobile hardware there is, that can run True Pervasive Drag n Drop App to App PiP PoP Multitasking to compete with Samsung’s Touchwiz? Name any other company that is capable of making the majority of their own parts in their own factories based in the markets they sell the most in? Tell me just is poised not only on the cusp of launching 64bit Chips w/ 4GB of Ram that they can actually use to take advantage of putting 64bit Xen on ARM Hypervisor w/ the capability to now run Multiple Guest OS’s and Guest App’s all running concurrently in protected mode on top of a bare metal 64bit Hypervisor…. and I’ll eat my hat!

    It’s Samsung that has now leaped ahead of all but Google in contributing the Open Source Linux Kernel. They are in the Top 10 Open Source Contributors in the same company as IBM, Google, Red Hat, Oracle, etc. This all revolves around Software…. People. The stuff like Touchwiz all the ignorant iDiots in this World said Samsung couldn’t do. If so…. tell me how they’ve been able to collaborate with Wacom on S-Pen and Dual Digitizers for Galaxy Note Series in blowing out the competition with superior creative content production, it’ll take eons for any competition to catch up to!

    Let me know just when Adobe co-operates with another device maker to bring Photoshop Touch/Stylus features to mobiles on? Let me see just one other company that is willing to spend Millions on developing a new State of the Art
    File System for Solid State Drives and then donate it to Open Source Linux Community for all to use F2FS?

    Sorry but there is not one other company on this Planet that’s willing to go toe to toe with a Megalomanic Fascist Company like Apple and produce models that fit every pocketbook, want and need of so many people on this earth as SAMSUNG!

    And then you people are crying over Google selling Motorola to the #1 Computer maker as if that’s a sin or against the greater good of the planet, just because that company happens to be a publicly held company (with global share holders no less, not PRC owned)?!? A hardware company no less that also makes much of their own parts and is willing to fund the Engineering Genius of the Father of Cellular Mobile Phones in the first place and I’ve just got to wonder if You All have had your Long Island Iced Teas Spiked with Apple Pure 180 Proof RDF FUD, Misinformation and Propaganda in monumental doses.

    If anything….. Samsung in all reality would have most likely preferred Google NOT sell Motorola to Lenovo. Because now they’ll be an even greater competitor than they’ve ever been owned by a Software OS Search Giant instead! …..for me it’s just hilarious that anyone would believe the hype surrounding this sale of Motorola to Lenovo. After all both Lenovo and Motorola are still core members of OHA along with SAMSUNG! ….yeah that company that is supposed to be hating on Google and Motorola for just so happening to be using the same Open Source Android OS!

    Get over it… and quit believing all the FUD both Microsoft and Apple are pumping out to make you all believe both Google Android and SAMSUNG…. are going down SOON! ;-P ….cuz the reality (minus the RDF’d FUD) is that both are Motorola and Samsung aren’t going away anytime soon! ^_* …. and neither is Google Android!