Trashed robot: Google dumps money losing Motorola Mobility for $2.91 billion

Wednesday, January 29, 2014
By OP Editor

Unable to improve weak demand of Motorola Android phone, Google will now sell the failing subsidiary.

Trashed Android robot, Google unit Motorola

Today, January 29, 2014, Google announced the sale of Motorola for $2.91 billion USD to Chinese company Lenovo. Larry Page:

“the smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices. It’s why we believe that Motorola will be better served by Lenovo”

Google will keep the Motorola patents so far proved useless, as they are mostly Standard Essential Patents that are required to be licensed out at FRAND rates.

Did Google flush money down its toilet? Google bought Motorola Mobility for $12.5 billion last year. The hasty purchase was made on the rebound after Google lost its joke bid of $3.14 billion for Nortel’s valuable telecom patents. The Motorola purchase closed on May 22, 2012. At the time, Google’s spin bots announced:

“The acquisition will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing.”

“Our aim is simple: to focus Motorola Mobility’s remarkable talent on fewer, bigger bets, and create wonderful devices that are used by people around the world.”

Since the acquisition, Google fired most of Motorola’s employees. Out of Motorola’s 20,000 employees, over 80% were laid off by Google, leaving 3,800.

Motorola Mobility kept losing money despite Google’s redesign of its whole Android phone product line after the flushing of Motorola mobile product pipeline.

Google’s attempt to sell overpriced phone customization options including $100 wood-backing failed too. Just weeks ago, Google had to drop the price of the unpopular option to $25.

It appears that Google’s supercharging of the Motorola train wreck only made it worst.

Image: Destroyed robot from the movie Real Steel (2011)


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Tags: Android, Fail, Google

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