If the reports are true (and Matthew Panzerino certainly thinks they are) then it looks like Google is selling off Motorola Mobility to Lenovo for a bargain-basement $3bn. This would represent a loss of around $9bn in a little over two years. (Update: It’s official.)
Except there’s more money been flushed down the toilet than just the loss on the deal. There’s also around $1.5bn of losses, plus probably hundreds of millions of dollars of legal fees which have spent chasing Apple around patent courts – to absolutely no effect.
The entire farce has cost Google somewhere in the region of $11bn, even once it’s managed to get $3bn back from Lenovo, which is desperate for a brand it can use to crack the American market.
This would eclipse the $10.2bn deal (and $8.8bn write down) for Autonomy done by those masters of a poor acquisition, HP.
Imagine, for one second, Tim Cook making a huge acquisition and, two years later, taking a $10bn bath on it. How loud would be the calls for him to be fired? Will there be similar calls for Larry Page to step down? Not a chance.
Update: Here’s another way of looking at it. Google sells Motorola Mobility for $3bn, after selling Motorola Home to Arris for $2.35bn. Assuming that Google is holding on to all the patents, and that its valuation of $5.5bn is correct (highly unlikely), that all comes to $10.85bn – a loss of around $2bn on the price it originally paid. Add in losses and so on, and you’re probably talking about a $4bn loss. That’s not quite the $6.2bn write-off that was Microsoft’s acquisition of aQuantive, but it’s not far off.
Willard Foxton, writing for The Telegraph, on Glenn Greenwald and the creepy cult that surrounds him:
I’m sure Mr Greenwald sees himself as a crusader for justice. It’s exactly that commitment to a cause that makes me wonder if he came across a document exonerating the Obama administration in this scandal, would he throw up his hands and say “Sorry guys, we have to forget about this one”? Or would he quietly bin it, because it doesn’t fit with what he believes as an activist? Journalism isn’t just about writing good copy, it’s about actually finding the truth, and accepting that sometimes it won’t be a truth you like.
This is exactly the problem I have with Greenwald. I don’t trust him not to simply ignore anything he comes across which doesn’t fit with his narrative.
Selective publication of documents only works if the journalist handling them can be trusted to publish the truth of what he finds. That’s incompatible with the idea of “activists journalist” that Greenwald espouses – because an activist, by definition, is batting for one side rather than another. There’s not a chance he would print “a truth he doesn’t like”.
Another report in the Korea Times suggests that Samsung is also working on a pair or smart glasses designed to compete with Google Glass, tentatively dubbed Galaxy Glass. Samsung is reportedly hoping to launch these glasses by September at IFA, which might get them to market sooner than Google makes its Glass available at the consumer level.
I’m trying to think of a new technology which has come out that Samsung hasn’t raced to copy.
Nope, still trying… no. Can’t think of anything.