Google Bears Loss Over Motorola Deal with Lenovo
Google is taking a hit of over $10 Billion by selling Motorola to China based Lenovo for $2.9 Billion after having bought Motorola for over $12.5 Billion in 2011. Why is Google willing to bear this loss? Most news articles claim that Google is merely getting rid of the extra baggage that was weighing it down.
Industry analysts and experts are not completely wrong in their perception because Motorola didn’t do too well under Google’s wing. But not entirely right either?
What is Google Keeping & What is Lenovo Buying
Google’s little juggling show with Motorola was actually meant to milk Motorola for its technology. The Android platform is Google’s favorite but comes with countless weaknesses and an immeasurable margin for improvement. In selling Motorola to Lenovo, Google is keeping most of Motorola’s patents.
For the price of $2.9 Billion, Lenovo is getting the rights to the Motorola brand and its portfolio, which means that Lenovo will get ownership of all current and future products under the brand name.
In addition, Lenovo gets asset ownership of around 2000 Motorola patents that were formerly Google’s property. However, Google is keeping ownership of all of Motorola’s patents (besides the aforementioned 2000 patents) and Lenovo gets a license to Motorola’s patent portfolio – not ownership. The deal excludes most of Motorola’s current patent applications as well as invention disclosures.
Lenovo is interested in Motorola’s Mobility trademark and hardware fabrication, which is essentially all that it gets from the deal because Google is keeping most of the good stuff for itself.
Why Did Google Really Buy Motorola Mobility in 2011?
When Google bought Motorola, it got around 17000 patents with around 7500 more still pending in the paper work pipeline. At that time, Android was under threat and caught in the middle of a legal war with Microsoft for patent violation so everybody thought this was Google’s move to legally secure Android’s footing. But then it didn’t use these patents to their full potential in legal proceedings.
The Android is 5.0 Coming Soon
People thought Google had made a desperate move and ended up missing its target of gaining legal dominance over Microsoft in the patent war. But Google’s latest move seems to have caught tech analysts off guard. What remains to be seen now is how Google will exercise the technology in these patents in the future.
Will the Android series see a radical integration with Motorola’s patented technology and lead us to the launch of an all new KitKat Lollipop? Or a KitKat Hershey’s Kiss? Saddle up my fellow Android patrons, because this roller coaster ride seems to have just begun.
What Do We Do While Google Scrambles
So we know that Google just put in about $10 Billion and around 15000 patents into developing a better Android. Yes, the Android platform is that weak! It has countless security flaws with new ones coming out (being reported) every day.
How am I so sure that Google is working on developing a better Android? Because Google is not giving Lenovo Motorola’s ambitious Advanced Technology and Projects group as part of the deal. Until Google can bring us a safer Android operating system, we can either wait for the Black Phone to come out soon, or use VPNs to secure our privacy and security.
What worries me is the thought that Google probably knows more about Android’s weaknesses than any us, and if the short-falls are critical enough to demand the injection of $10 billion (in patents) into the Android project then I am more than a little concerned.