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Is Google Muhammed Ali or a Playground Bully? - Multiplayer vi [entries|archive|friends|userinfo]
Tomas Gallucci

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Is Google Muhammed Ali or a Playground Bully? [Aug. 16th, 2011|09:35 am]
Tomas Gallucci
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[music |Daniel Licht - Dexter score]

So after the feeding frenzy yesterday of Google buying Motorola Mobility Inc., cooler heads are prevailing and doing fact-based analysis.

For instance:

  • 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.