A Few Quarters Can Be All That Motorola Needs

Subject: General Tech, Mobile | February 15, 2014 - 11:47 PM |
Tagged: motorola, Lenovo, acquisition

According to Bloomberg, Lenovo's CEO has recently made a claim in a phone interview that, "In a few quarters we can turn around the business [Motorola]". Google is currently in the process of selling a subset of Motorola to Lenovo for $2.9 billion USD. When it was first announced, I assumed the deal was based on Motorola's brand power and their relationship with wireless carriers around the world.

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Now, two weeks later, Lenovo outlines their plan. The company expects to push Motorola into China, emerging markets, and even existing ones. Lenovo's CEO, Yang Yuanqing, believes that customers will positively identify with the brand, especially in China. They are planning to relaunch the brand in China and become a stronger third-place competitor (globally).

The company also disclosed that approximately 3,500 employees would carry over with this acquisition.

Source: Bloomberg

You Got Something? Lenovo's Buying. Google Sells Motorola.

Subject: General Tech, Mobile | February 1, 2014 - 09:01 AM |
Tagged: motorola, Lenovo, google

Lenovo has a few billion dollars to throw around, apparently. The company, typically known for consumer and enterprise PCs, just finished buying more food off of IBM's plate with the acquisition of their x86 server and mainframe business. That business was not as profitable for IBM compared to their rest of their portfolio. $2.3 billion, mostly in cash, was the better choice for them (albeit a reluctant one).

Another $2.9 billion yields them a lean subset of Motorola.

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Not Google, either.

Lenovo has been wanting a bigger share of the phone and tablet market. Unlike when Google purchased Motorola, Lenovo was not as concerned with owning the patent portfolio. $2.9 billion is a small fraction of $12.5 billion sum that Google valued Motorola at, but Lenovo only wanted about a tenth of the patents. That said, a tenth of the patents is still a couple thousand of them.

For the longest time, I have been thinking that Google was going the wrong route with Motorola. It seemed like any attempt to use the company as a cellphone manufacturer would either bleed money in failure or aggravate your biggest partners. I figured it would be best for Google to pivot Motorola into a research company which would create technologies to license to handset developers. This could be a significant stream of revenue and a love letter to their OEMs while retaining the patents they desired.

I did not think to spin off or sell the rest.

Ironically, that is very close to what we have today. Google, eventually, got rid of the cellphone division except for their licensed "Nexus" trademark. Google kept their patents and they kept the Motorola research team ("Motorola Advanced Technology and Patents Group").

It does not quite line up with my expectation, however; at least not yet. The Motorola research team would need to produce technology to license to partners and maybe other handset manufacturers; also, the time they spent with their toe in handset development bathwater could have already harmed their relationships, irreparably.

As for Lenovo, it seems like a clear win for the company. Motorola still has significant brand power and an open dialog with carriers worldwide at a cost of just a few billion. I do have questions how Lenovo will integrate the brand into their portfolio. Specifically, which company's name will be on each product? I expect it would have to be "Lenovo" but I also believe they have to put the Motorola trademark somewhere, right?

Anyway, who do you predict Lenovo to purchase next? Has the insanity ended?

Source: The Verge

Time to swap your remote for Pulse-Eight's wireless keyboard?

Subject: Systems | May 30, 2012 - 02:21 PM |
Tagged: htpc, motorola, Pulse-Eight, Motorola NYXboard Hybrid, wireless keyboard

Pulse-Eight's Motorola NYXboard Hybrid Wireless Keyboard and IR Remote is a double sided device, with a minimalist keyboard on one side and a more traditional TV remote control on the other.  It is perfect for those with an HTPC or set top box which allows web browsing and other features that a standard remote just can't fully control.  An internal switch ensures that only the buttons on the side of the device which are currently on the top are active to make usage a lot more convenient.  At 144 x 48 x 21mm (5.7" x 1.9" x 0.8") it is too small to have a full standard keyboard but thanks to numerous key chords you get a lot of functionality out of this tiny device.  Check with Missing Remote to see if this is the remote missing from your life.

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"Not long ago it was easy to lean primarily on a traditional remote control – universal, of course -- relegating the keyboard and mouse to the audio & video (A/V) cabinet, closet, or other locale of last resort –dragging it out just for occasional maintenance or troubleshooting. However, as over-the-top (OTT) content providers such as Netflix, Amazon Prime, Hulu and YouTube have become more pervasive, the traditional remote can no longer provide enough functionality as we transition to a search, browse and consume environment."

Here are some more Systems articles from around the web:

Systems

 

"I look forward to welcoming Motorolans to our family of Googlers"

Subject: General Tech | August 15, 2011 - 01:26 PM |
Tagged: purchase, motorola, google

The tech world is always going through changes; much like life in a pond, the small things either grow into big things or something big eats them.  Motorola was once a big fish, but went through some lean times, losing about $4 billion from 2007 to 2009. They started off more than 50 years ago, designing chips for radios and TVs and even providing communication chips to NASA for many missions including the first moon landing.  From there they sold off the TV portion to a little known company called Panasonic, so that they could focus on their communications chips and to start dabbling in what became the 6800 and 68000 series of chips.  Those chips powered Amigas, the original Apple MacIntoshes; even the joint IBM and Apple PowerPC chips were Motorola and that architecture is still used today.

As of today that once big fish is now a part of Google, as they purchased it at a premium of 63% above market value.  That is certainly a decent deal for stockholders and may well be a great deal for Motorola employees as well as they move to a strictly Android based development regime. That may lead to some interesting times in the future, as Google claims that Android will remain open and run on any architecture.  However, now that they own a complete closed development chain, in the form of Motorola's patents and hardware, the open philosophy may run counter to the development of hardware.  John McCarthy of Forrester Blogs, as well as many others are following this story; though it will be quite a while before we know the full repercussions of the purchase.

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"Earlier this morning, Google announced its intention to buy Motorola Mobility for 12.5 Billion in cash or $40/share. There are three broad justifications for the deal:

  • Access to the Motorola patent portfolio which it could then license to partners like HTC and Samsung to protect against the long arm of Apple's lawyers.
  • An integrated hardware/software play to compete with Apple. The problem with this logic is that the deal does not address the fragmentation on the Android platform which is the bigger issue.
  • The set-top business to bolster its lagging Google TV offering."

Here is some more Tech News from around the web:

Tech Talk