We have touched on the topic of Google selling Motorola off to Lenovo. We even touched on why Google would sell Motorola Mobility after such a short run behind the wheel. That reason, plain and simple is the blood that runs in the veins of business, and that blood is green. We are talking about money here, and since 2012, when Google bought Motorola Mobility, they have been doing nothing but lose money through the company. Google announced the reasons behind the purchase of Motorola Mobility, was in the name of Android. They claimed it had little to do with the handsets they could create, and more to do with the patents they would acquire. Those patents held by Motorola Mobility cost Google $12.5 billion, and the promise of not giving Motorola Mobility any special treatment.
The idea, was that Google would run Motorola Mobility as a separate company, not ditching other OEM’s especially when it came to the Nexus line. Instead, Google wanted only to hold the patents that came with Motorola Mobility, and use them to protect Android. That’s exactly what they did, they left Motorola as a separate company, and used other OEM’s like Asus and LG, to keep the Nexus line alive. Though, the decision to continue relationships with other OEM’s became one of many reasons that would ultimately lead Google to sell Motorola Mobility to Lenovo.
Motorola did give us a couple of great devices, like the Moto X and the Moto G, but that wasn’t enough to regain footing in the Android handset markets. Which, to be fair, didn’t seem to be Google’s main goal. The other downside was the patents didn’t work out the way Google thought they might. In fact, when Google has tried to use those patents to get anywhere, courts and officials seem to ignore them. Making it near impossible for Google to be awarded any type of damage rewards or injunctions using the patents. So, instead of making money there through Motorola Mobility, Google didn’t have the luck they thought they would. Instead, they spent $12.5 billion on the company, after which, regained $2.3 billion on the set-top box sale to Arris, and now, they may get back another $3 billion. Still, not quite what they may have wanted, but something is better than nothing. Now the question is what about the consumers? With every OEM, there are groups of people who love the quality, or UI, or whatever they have that makes them choose that OEM every time. So like any other OEM, there is Motorola fanboys and girls. Those fans of Motorola who loved that Google was behind software updates, and support, may see this as a negative. Google may not be as quick to update software anymore, or be there for any support for those consumers, however, there has been no word yet on that. We have to keep in mind that though Lenovo may not have a big hand in the mobile market just yet, that doesn’t mean they don’t know what they are doing.
Lenovo has had some trouble in the past with mobile handsets, but they did turn around the tablet market using IBM’s Thinkpad line. So we must have faith in Lenovo to do the right thing, and bring back Motorola Mobility from a failing company, back into what we hoped Google would do. Possibly, using the fame given by “A Google Company” tagline, and use that to keep the attention on them as they create something amazing. Motorola CEO Dennis Woodside, has made a statement that this change will combine “two challenger brands…” which ultimately “will become a true force in mobility.” This is all to say, that there is hope and we need to keep that in mind. Especially since Google reported an operating loss of $248 million just last quarter. That makes a huge loss, and is more than enough reason to sell the company to Lenovo. Now Google may be able to focus more on other projects, like Glass, and Nexus tablets, which is where they really have to make some decisions. Plus, Google isn’t getting rid of the entire company. They are planning on keeping part of Motorola Mobility, mainly the Advanced Technology Group.