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Google for MOTOROLA burn money burn

By Bernice Fisher,2015-12-15 03:58
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Google for MOTOROLA burn money burn

    Google for MOTOROLA "burn money" burn?

    After acquisition by Google (weibo), MOTOROLA (hereinafter referred to as the "MOTOROLA") after many layoffs restructuring, still showed signs of reviving.Why should the us technology industry for Google acquisition MOTOROLA, as well as the acquisition strategy on mobile devices said "scratching his head can not its solution".Technology press The Verge, said one day, Google may completely writedowns $12.5 billion in assets, The failure of The deal in a sentence.

    In the past eight months, MOTOROLA has carried on the three big layoffs, 6000 employees were cut and yet the losses of the company continues to expand.This year, MOTOROLA will losses of $1 billion.Recently, due to Wall Street and investors has a bright future for

    Google, Google's share price broke the $1000 mark.People, however, the question seems to be exist for a longer time before: why should Google acquisition MOTOROLA?Despite the latest performance data and mobile devices, but industry on this issue, still can't get a reasonable explanation.

    MOTOROLA this "money pit", will the performance impact of Google?From multiple perspective, the answer is no.Although MOTOROLA business losses, but Google as a whole is profitable, Google cash inventories are still rising.

    But media points out, if MOTOROLA continuing losses, Google will be forced to write down $12.5 billion of assets, for failure of buy the end.Google's shareholders, of course, also will be shelled - on a mobile device market, Google to put down the hasty presentment of mistakes.

    Technology market research companies in the United States' Current - Analysis "of consumer equipment, research director at green (Avi Greengart) said:" the Google acquisition MOTOROLA mobile, I am still in Orion, why would they do that? They play of MOTOROLA really want?"

    In the last quarter, MOTOROLA introduced Google in the first flagship phone Moto - X, after the phone get good evaluation in the industry, product sales is not ideal, however, has not stopped losses of

    MOTOROLA, allegedly, Google just sell out of 6 million units, you can break even.And apple's iPhone and samsung's Galaxy smartphone, compared the sales also can only say that dwarfed, was still difficult to achieve.

    After joining Google MOTOROLA, on the marketing and product shop goods, there are soft rib.Moto X - has so far only sales in several countries, and a new Droid series mobile phone, but only one operator sales in the United States.

    The Reticle Rubin (Ross Rubin, an analyst with research company, said by Moto X - mobile phones, MOTOROLA has made some progress, still suggesting that rely on Google's technology, MOTOROLA can still in the android camp to find their own positioning, differentiation through processor, sensors and other hardware configuration.However, in addition to the Droid phone operator Verizon wireless long-term cooperation with the United States, MOTOROLA need more telecom operators, and closer relations of cooperation, in order to revive the brand, to become the Google advanced technology to provide a channel of consumers.

    According to Google at the top of explanation, an important purpose, acquisition of MOTOROLA is to obtain the huge patent technology,

    Google account for investors, large patent portfolio that can withstand the lawsuit against rivals for the android ecosystem.

    But before a court case involving MOTOROLA, MOTOROLA's patent licensing fees of year, only be valued at $1.7 million, far below the MOTOROLA once demand for Microsoft's proposed $4 billion a year.

    In the United States international trade commission is a ban on the iPhone's dispute, MOTOROLA's patents library "weapons", also not to force.

    The analysts, green said: "some of MOTOROLA's patents, which may be for research and development of new equipment and securing patents have certain effect, but according to Google, Google acquisition MOTOROLA, mainly to patent licensing business, this idea has proved failure."

    Rule out smartphone business and patent assets, if Google want through its acquisition of MOTOROLA, into the innovation of new hardware domain (such as Google often engaged in some intelligent glasses forward-looking innovation project), it also said in the past.

    , according to a patent recently disclosed MOTOROLA has developed smart watches, Google could quickly to the market.But on the set-top box business, Google has to give up.Google will MOTOROLA's set-top

    box business, for $2.35 billion, transferred to Arris company.In addition, Google later launch Chromecast TV bar products by consumers are snapping up, nor MOTOROLA's research and development of

    products.All in all, MOTOROLA's patents library, may play a role in the future, but so far, its performance is still "couldn't" is used.

    Add green, said Google let MOTOROLA mobile phone, but at the same time, and other partners create a mobile phone, they won the set-top box business, but be transferred, and on the Chromecast, they find a other partners, "Google's strategic confusing, especially if you restore the MOTOROLA brand."

    Rely on Google's financial resources, they also can be in the next several quarters to a loss of business blood transfusion.In last week's earnings analyst conference, Google executives, including CEO larry page), said they have no intention of change of MOTOROLA's development plan, Google on Wall Street, analysts say, to prove to buy MOTOROLA has value, must also continuing to pour money into.

    Unless Google's overall performance problems, the company in the short term will not take big decisions about MOTOROLA (such as Microsoft spent more than $60 bought online advertising company aQuantive, integration of failure, but five years after the asset reset).

    The green, analysts said, from the perspective of return on investment, MOTOROLA to showing "signs of life" is still a long way to go, "their new product is not mediocre, MOTOROLA also cannot say is a failure of the company, from a financial point of view, however, Google acquisition MOTOROLA, not failure, but rather a disaster."

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