Motorola Mobility’s supposedly last Quarterly Results before it is amalgamated in the Search Giant Google are in Red. Motorola, true to it’s word about a bleak last quarter posted a operating loss of US$ 70 Million. In a nutshell Motorola lost a small fortune to the tune of US$ 285 Million in the last year. Industry speculation were rife with this bleak news & are still worried about Google’s knee-deep involvement in this company.
What is Google’s game-plan?
We had reported the acquisition deal in August 2011 before the last quarter even began. While the deal appeared to a defensive shield against the ongoing Patent wars, it is not the sole reason. Motorola makes many electronics while smartphones & tablets are just a fraction. A part of the offering is the lucrative Cable-TV business, which Google is eying. Google had also announced its intention to offer a serious competition to iPad3! While from a short-term cost perspective people believe Google did make a mistake. But such acquisitions hardly mattered in comparison to the US$ 12.5 Billion investment in Motorola!
While everyone is worrying Google made a loss, it will be wise to look at present numbers & compare them with what Google did. It bought Motorola at US$ 40 per share. Currently, it is running at US$ 38.67, which is UP 7 cents. So Motorola appears to be down, but not significantly. Furthermore, Google’s acquisitions are always kept low-key. Remember, Google made no fuss about Android when it was acquired & YouTube didn’t even feel a property of Google till about 2 years from the buy-out.
So, Google has been known to take a good product & mold it to suite its needs. While the take-over deal is being scrutinized for approval all over the world, it could be another Golden opportunity, which just seems to be going through a lean patch.
What do you think?