Google sells Motorola: why it’s not such a bad deal as everyone thinks

You’ve probably already heard the most sensational news of the outgoing month: Google sells the Chinese company Lenovo Motorola. That same Motorola, for which about two years ago paid $ 12.5 billion now give her a $ 2.9 billion Tu most Motorola, which last fall released two very good smartphone Android, – Moto X and Moto G. Do not understand what it all means? You are not alone. We have prepared a guide that will help understand what happened and explain why the deal should not rush to call a failure.

How many Google lost on the transaction? Less than many people think. The most popular joke of the day belongs to the blogger (and fan of Apple) John Gruber: “I bet that Google would have more time to just pull $ 9.5 billion in cash in the toilet.” In fact, it’s not so scary. First, at the time of purchase on the Motorola smartphone maker accounts was $ 3 billion cash. Secondly, some time ago, the Internet giant got rid of divisions Motorola, which was engaged in the creation of set-top boxes. It for $ 2.35 billion acquired company Arris. Thirdly, Google managed by former Motorola losses significantly save on taxes – it probably is about the sum of $ 1-2 billion . turns out that in reality, Google gave Motorola for much less. Finally, Google is almost entirely leaves a huge number of important patents.

What patents? When Google announced the purchase of Motorola, CEO Larry Page explained it as follows: “The deal will strengthen the patent portfolio Google, that allow us to protect Android from non-competitive attacks by Apple, Microsoft and other companies.” But the valuation of patents – is not a science but rather an art. Initially argued that intellectual property Motorola (17,500 patents and 7,500 applications for new ones) is estimated at $ 5.5 billion, then said that their Google overestimated . In particular, the Internet giant managed to get through the court of the obligation to pay Microsoft anecdotal amount – less than $ 2 million a year . But as Google has been aggressive in patent trolling? Some questions.

Google reserves itself the most curious division of Motorola – a secret laboratory (Advanced Technology and Projects Group), which is developing a variety of future technologies. It is headed by the former head of the military agency DARPA Regina Dugan. It was there that creates a modular smartphone Ara.

Google removes tension between partners Android.’s No secret that Samsung was skeptical buying Motorola. There was a risk that the South Korean corporation can begin to discriminate against Google services in favor of their own. According Recode , it is now less likely. And recently, Google and Samsung have agreed to combine their patents into a single pool. Given that sales and Moto X Moto G, despite positive reviews, was not too successful, a good relationship with Samsung and others for Google may be strategically important.

Lenovo may well turn into a very strong player in the mobile market. The company is already the world’s largest manufacturer of personal computers. And according to Strategy Analytics , buy Lenovo and Motorola turns into one of the largest manufacturers of smartphones: Summary for both companies last year accounted for about 6% of global supply. It’s good for Android. It is good for Google.

When the transaction is closed? Maybe not soon. Tech in Asia logical notes that U.S. regulators may not be thrilled with the idea to give the American communications company in China. Although Lenovo has not been seen before in suspicious relations with the PRC government ( like, say, Huawei ), the situation remains delicate.