Google Sell Motorola: 10 Things to know

It’s a surprise that Google has sold its Motorola units to Lenovo for a ‘meagre’ $2.91 billion. Google has acquired Motorola mobility for $ 12.4 billion in 2012. Since the unit has been widely financial headache for google incorporation. After acquisition of Motorola Google has lost nearly $2 billon. So, what does google getting rid of what is widely viewed as its most expensive mistake for key players: For Motorola, Lenovo and Google itself? Now let see how it will impact smartphone market.

• ·         China’s Largest ever deal.

Lenovo has done China’s biggest-ever Technology deals by acquired Motorola for $ 2.91 billion. Which come close on the heels of Lenovo by buying the low-end server business of another US Giant IBM for a sum of $2.3 billion

• ·         Google Gets to Keep Patents.

Google has given Chief reason behind buying Motorola was the latter’s patent portfolio, valued about $5.5 billion, which google isn’t lettering them to go off as Motorola had acquired more than 20,000 patents. Google has kept 2,000 patents assets and rest has going on Lenovo’s way. The Chinese manufacturer also getting licensing option for the patents retained by google.

• ·         How Lenovo gains

World No. 1 Laptop maker Lenovo so far has not been able to make a mark in global smartphone arena. Lenovo is well-known for its Quality of Product and how ever with Motorola company have to sustain its images in global smartphone arena too. Lenovo is dominant only in china and is already amongst top five smartphone makers globally, and soon it will add new brand value to its global image.

• ·         But it’s not final yet

While Motorola acquainting is final from google and Lenovo’s side, the deal awaiting the approval of US and Chinese regulatory authorities. This can take up to six to nine months.

• ·         Apple, Samsung get new rival

By Acquiring Motorola, Lenovo is getting its hand on a US based company that is well known and admired in the biggest smartphone market in this world. Analytics shows that this deals will create new competitor rival for the industry leader such as Apple and Samsung. The Combination of Motorola brand equity with Lenovo’s manufacturing prowess and brand recognition is potent enough to create a formidable rival for the two biggest smartphone.

• ·         IS Samsung behind the break-up?

Samsung, the biggest company in the mobile device space, recently sign billion-dollar patent deal with Google. Which also reported promised to scale back its software efforts in google apps and services favors. According to this report, this means that Samsung’s touch wiz UI and recently introduced magazine UX may get the cut or at least be altered.

Relation between Google and Samsung have been little frosty lately. As Google buying a hardware manufacturer of its own “Motorola” was widely seen as the cause of tension between two companies. When last year S4 Launched Samsung completely ignore android. Also till, recently also it promoting Tizen which is rival of Android and the new Mobile Operating System. This has been despite the contribution and relation between Android and Galaxy range Products.

Now, as Tizen getting delayed (yet again) and a key patent pact has been signed between two companies, this had led technology communities to speculate if Samsung and Google recently cozying up to one another has to do with the Motorola deal.

• ·         Over a Billion- Dollar loss for Google.

Its Costly affair for Google after purchasing Motorola. Google has purchased Motorola for $12.5 billion, but sold it for $2.91 billion; Motorola’s patterns portfolio is of $5.5 billion and most of the patent will remain with Google only. Internet giant pocketed $2.35 billion last year when it sold Motorola set-top box business to Arris Group. Which means Google has lost sum of $1.65 billion with its acquisition and eventual sale of Motorola rate and expensive bet for any company.

• ·         Samsung Gains too

Samsung too stands to benefits from Motorola patents with Google and Lenovo, its different thing that Samsung has much less valuable than Google had. The Popular Samsung Galaxy Smartphone and Tablets is powered by Google Android, and Google has entry into the handsets arena with purchase of Motorola which has created a rift between the two. According to Forrester analyst Frank Gillett, “The Combination of a Samsung-Google peace pact and Motorola going to Lenovo means that Samsung has pledged allegiance to Google’s Android.”

• ·         Google goes up, Lenovo falls

With this deal, sharing of the two companies have traded fast, showing market sentiment toward this move. While google shares went up by 2.5% and Lenovo saw its stock dip 8.71% following the announcement.

• ·         Google keeps the ‘cool stuff’ too

Apart from patents, google also get the ‘cool stuff’ Motorola is working on, chiefly the Advanced Technology Group (ATG) and Project Ara. The Former is the division where the manufacturer develops technologies like an internet- connected mic that is tattooed passwords. Project Ara is an initiative to emulate the success android on the hardware front by providing users with customizable smartphone, offering option to choose and replace components like Camera, RAM, Processor, Screen size etc.

Google expects US nod for Lenovo-Motorola deal

Google executive chairman Eric Schmidt expressed confidence that Lenovo would gain approval from US regulators to buy Google’s Motorola smartphone hardware business in what would be China’s biggest technology acquisition to date. 

Schmidt said he saw “a good chance” of the deal passing muster with the Committee on Foreign Investment in the United States, or CFIUS, which monitors acquisitions by overseas corporations. 

Speaking at a dinner organized by the Cato Institute think tank, Schmidt said Lenovo’s experience buying IBM’s ailing personal computer division in 2005 would stand it in good stead as it seeks the green light to acquire the Motorola business. 

“There’s a good chance of it being OK,” Schmidt said, adding, “We would not have done the transaction if we thought it would be in trouble.” 

Lenovo said last week it would acquire the Motorola handset business, along with some 2,000 patents, for $2.91 billion. That came days after an announcement the company would purchase IBM’s low-end server unit for $2.3 billion. 

The deals will be reviewed by CFIUS to ensure they do not threaten national security.

Google connects to technological rankings pushing for streaming TV deals

Google has generally made up overtures to media organizations that is about certification to their content for an “over-the-top” services which is the kind that is usually delivered video through networks of any other satellite television service and also cable suppliers.

A couple of years ago, that revives an initial attempt by the Mountain View, Calif., organization, in accordance with the final report, which is provides that Google’s pitch has progressed to be include a demo of the product and service.

Before such an expert product and service can even become a reality, it’s already a part of a reasonably competitive landscape. Not only will over-the-premier top rated services that have competed with cable-television providers like Satellite and Comcast pay-TV providers like DirecTV that have been bringing out a consumers thousands of content options for decades, a few number of tech heavyweights are racing to be produce a broadband-based alternative.

Intel has been seeking out a very similar expert product and service which is estimated to be released this year, in an effort to be a very big part of the very next big technology market, after the organization missed the boat on the Smartphones.

Apple apps has long been said that to be doing work on an Internet TV expert service to be fill out its current Apple TV device which is currently has on-demand video services.

Google already beats Apple to the be impact on any of another form of streaming media. It has introduced a streaming music service in May, placing it in Google in competition with the likes of Spotify and Pandora and also Apple with its iTunes Radio.

Google usually released a TV software platform, morphing the Chrome browser to be overlaid on a very Smart TV in 2010.