Google sells Motorola (The real story)

As many of you may have already heard, Google has sold Motorola to Lenovo for $2.9 Billion Dollars. This is just 2 years after Google acquired Motorola Mobility for $12.5 billion. Now it doesn’t take a Patrick Bateman (My attempt @ referencing American Psycho) to recognized that was a poor decision by Google. Like most things in business there is more then meets the eye. I will list them out for you.

1) Google sold Motorola for a lose, but Google kept the majority of the patents that were acquired during the 2012 merger.

2) Google is cutting loses, moving on from that part of their hardware game. Google kept all the core top-level employees from Motorola, investing in talent is something Google has done very well with in the past.

3) Google no longer has to fight a legal battle from Samsung, they are playing nice.  I believe this was one reason Google acquired Motorola in the first place. They need leverage on Samsung and the patents they would be acquiring from Motorola could possibly have benefited them at the time.

4) Google might actually be having a difficult time managing the hardware company. They themselves mainly being a software company runs differently then Motorola, and being as how big Google is. It is easier to pick out the talented and merge them into its ecosystem then vice versa.

I think all these reasons could have played a part in the selling of Motorola. Bottom line is Google has washed its hands clean. Motorola on the other hand isn’t looking too shabby either. Lenovo is a good company that few Americans know about, but is huge internationally. They are the leading PC maker in the world, and is third in the mobile technologies. I can personally say the make good hardware. They bought IBM’s PC division in 2005, so they got some players. Now that they have acquired Motorola, Lenovo can come become top dog in the mobile market as well as the PC market. We will have to wait and see.

 

 

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