Why Google Motorola resold at a loss to Chinese Lenovo - 20minutes.fr

From our correspondent in California

The news came after the close of trading on Wednesday. Google will sell the Chinese Lenovo Motorola Mobility for $ 2.91 billion, less than two years after buying it for $ 12.5 billion. And despite the arithmetic seems unfavorable, it is rather a good deal for the Californian company. Explanations.

Google retains the majority of Motorola’s patents

Google was the crown jewels. When Google bought Motorola in 2012, he wanted to “boost the Android ecosystem by creating a broad portfolio of patents,” wrote his boss Larry Page. Google will “retain control of the majority” of patents and “will continue to use them to defend Android.” Against Apple and especially against all the “trolls” that multiply the trial taking advantage of the American system.

Google does not lose $ 9.6 billion

addition is less salty than it seems. Google had already sold the box Internet / TV Motorola for $ 2.4 billion. In a document provided to the financial authorities, the company had to time the encrypted value of patent portfolio to $ 5.5 billion. It is probably much less actually, but Google must absorb on paper about 2 billion plus losses generated by the activity of Motorola for 19 months, $ 3.5 billion in total.

Google failed to revive Motorola

Despite

welcomed as Moto X models, Motorola was a dead weight, and things are not contrived: last quarter, Motorola lost $ 248 million. At a rate of 1 billion per year, Google has decided to cut his injured arm. It alleviates the way its payroll by 10% (4,000 to 44,000 employees).

sale simplifies the game for Android

With Motorola, Google had a hand in two jam jars: the hardware and software, which does not really liked its Android partners such as Samsung, HTC and LG. According to Larry Page, the sale “does not change the ambitions” of the company on the hardware. But he says that Google wants to focus on “emerging ecosystems” as portable electronics, with Glass or smart objects via the recent acquisition of Nest.

So, good or bad deal?

“It’s good business for Google and Lenovo,” says 20 Minutes Gartner analyst Van Baker. According to him, Lenovo “may well enter the U.S. market safer” with Motorola and patents licensed two-way with Google. The American, he “stopped competing with other manufacturers while maintaining patents.” Google has he lost money in the case? Absolutely. But, says the analyst, “he had the means,” with more than 50 billion cash reserve.

Philippe Berry