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.