|Is Google Muhammed Ali or a Playground Bully?
||[Aug. 16th, 2011|09:35 am]
So after the feeding frenzy yesterday of Google buying Motorola Mobility Inc., cooler heads are prevailing and doing fact-based analysis
- MMI gets $2.5 billion regardless if the deal is allowed to go through.
- Google made $8.5 billion in net profit this year and $6.5 billion last year. Given that the deal is for $12.5 billion, Google just spent almost two years of profits to make this deal happen. Let's not forget that Google doesn't have as much cash in the bank as Apple does.
- This deal is for nearly 3x as much as the Nortel deal that Apple, Microsoft and Oracle won for $4.5 billion
- This move puts Android another $12.5 billion in the red in addition to its previous debts and liabilities.
And the list goes on, particularly when you understand that Samsung was angling to buy InterDigital
. And then, of course, Motorola was threatening to sue other Android handset makers AND
was looking into making Windows Phone 7 devices
Yesterday, reading the news, I thought that this was all about Google buying 17,000 patents
in order to turn around and sue Apple over the iPad since Google can't compete in the tablet market. Today, I see this is about Google's weak position in the marketplace.