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The way this worked out was that Google spent $12.5B, but they got: Cash: $3B Tax Credits: $1B Sale of Motorola Home:

The way this worked out was that Google spent $12.5B, but they got: Cash: $3B Tax Credits: $1B Sale of Motorola Home: $2.4B Sale of Motorola Mobility: $2.9B --------------------------------- Total: $9.3B So Google ended up paying about $3.2B for Motorola's patent portfolio, which was valued at $5.5B. https://dealbook.nytimes.com/2014/01/29/did-google-really-lose-on-its-original-motorola-deal/?smid=tw-share&_r=0 https://dealbook.nytimes.com/2014/01/29/did-google-really-lo...

notatoad 9y ago
you can make the math look okay as long as you ignore the $200-500M per quarter in losses that google swallowed for the 2.5 years that they owned motorola.
- xapata 9y ago
  Which would make the deal about break even, depending on whether that was more like $1B or $2B lost each year.
  - nimchimpsky 9y ago
    It's almost as if the people running Google are not idiots.
    - IshKebab 9y ago
      That's a stupid thing to say. People running large companies can be idiots. Look at Microsoft's Nokia deal.
      - heartbreak 9y ago
        There’s a difference between being an idiot and losing a bet, right?
        IshKebab 9y ago
        Yes, but everyone thought it was mad at the time.
        jsight 9y ago
        I wouldn't say that everyone thought that. I frequently said things about the foolishness of that bet only to be shouted down on internet forums.
      - nimchimpsky 9y ago
        Steve Ballmer strikes me as an idiot. He doesn't run google.
        xapata 9y ago
        Gates thought he was sharp. Do you think Gates can't tell the difference?
        nimchimpsky 9y ago
        People make ,mistakes, and my definition of a raving idiot maybe different to others.
  - ethbro 9y ago
    At the same time, what was the alternative? If you wanted Motorola type patents... you can't just buy them off a shelf. There's a limited supply, and only some of them are ever for sale.
- Zigurd 9y ago
  Quite so, and the cost of Moto also does not include the management distraction of doubling headcount and diluting company culture during the period where Google owned Moto. You can look at the HTC deal as the learnings from the Moto deal: Buy only what you need, spend no time, money, or attention on things you will need to get rid of.
bernadus_edwin 9y ago
From business perspective, people should also calculate cost allocation to opportunity winning market and risk being sued by competitor

notatoad 9y ago

you can make the math look okay as long as you ignore the $200-500M per quarter in losses that google swallowed for the 2.5 years that they owned motorola.

xapata 9y ago
Which would make the deal about break even, depending on whether that was more like $1B or $2B lost each year.
- nimchimpsky 9y ago
  It's almost as if the people running Google are not idiots.
  - IshKebab 9y ago
    That's a stupid thing to say. People running large companies can be idiots. Look at Microsoft's Nokia deal.
    - heartbreak 9y ago
      There’s a difference between being an idiot and losing a bet, right?
      - IshKebab 9y ago
        Yes, but everyone thought it was mad at the time.
        jsight 9y ago
        I wouldn't say that everyone thought that. I frequently said things about the foolishness of that bet only to be shouted down on internet forums.
    - nimchimpsky 9y ago
      Steve Ballmer strikes me as an idiot. He doesn't run google.
      - xapata 9y ago
        Gates thought he was sharp. Do you think Gates can't tell the difference?
        nimchimpsky 9y ago
        People make ,mistakes, and my definition of a raving idiot maybe different to others.
- ethbro 9y ago
  At the same time, what was the alternative? If you wanted Motorola type patents... you can't just buy them off a shelf. There's a limited supply, and only some of them are ever for sale.
Zigurd 9y ago
Quite so, and the cost of Moto also does not include the management distraction of doubling headcount and diluting company culture during the period where Google owned Moto. You can look at the HTC deal as the learnings from the Moto deal: Buy only what you need, spend no time, money, or attention on things you will need to get rid of.

bernadus_edwin 9y ago

From business perspective, people should also calculate cost allocation to opportunity winning market and risk being sued by competitor