Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple CFO Reacts to Google/Motorola Deal
- Thread starter MacRumors
- Start date
- Sort by reaction score
The Economist calculation is pretty finteresting. It seems to me what this is saying is that Google has very little idea what the value of the specific patents are, so they just used an industry benchmark for random patents. Does Google understand what they bought, or is it just "some pile of patents."
Whereas, the fact that a set of fairly diverse companies were involved in Nortel suggest that the various players had some specific IP they were focusing on, within their own grand pile.
Interesting also, based on this benchmark, they valued the rest of the business at exactly zero, which suggest to me they don't have a clue as to what to do with it.
Where is your car?
You're right - they have more than $76 billion by now.
It suggests to me that they think they got a real steal:
A ton of patents at a standard price, PLUS a free established set of businesses thrown in that they can partly or wholly sell off to Dell or Asus or Dish Network, or use to make inroads into handsets and homes.
You're right - they have more than $76 billion by now.
Too bad $41 billion of that is overseas and can't be used in the USA.
When Apple's CFO said "That's a lot of money", it sounded a bit wistful... like gee, I wish MY boss would let us spend that much at one time! (j/k)
He didn't say they were dumb - he said they spent a little too much then they should have.
Not this argument again. The Oracle case is on life support. Their damages have been severely reduced, their claims gutted, most of the patents invalidated.
Before quoting that case as a hurdle to Google, read up on that case's state. Oracle is the one that needs help here, not Google.
Pure speculation on your part. Of course individual patents are worth different amounts depending on the patent itself, but the point is you can't really judge every individual patent when you're buying up 17,000 or even 6,000.
So by that token, if they over paid at 500,000$ per patent, so did Apple at 750,000$. That's a fact.
Last edited:
Considering the number of Motorola patents Apple may be violating and the HTC lawsuit against Apple for violating three of its patents, it could be the opposite.
Chump change you say? 33% of GOOGLE'S cash reserves is chump change?? LOL. Not very business minded are we?
Do you realize that from your statement above, that if Google were to rely on Android to cover this acquisition and bring in profit, it would take 57 YEARS ? Fortunately for them, they don't. And btw, since Google gives Android away and only makes a few dollars off of handiest sales, Google might be bleeding money for Android at the moment.
Apple doesn't spend BILLIONS of dollars on hobbies- Apple TV or otherwise. $12.5 B is not hobby money for ANYONE except maybe some of the most wealthiest of governments (even this would make a government say WTF?!) I'd be willing to assume that $12.5 B to ANY CEO on earth is OMG HOLY *****!!!111!!1!111!!! money!
I think you may be a little too enamored with Google to see just how incredible of a risk they've taken.
We weren't talking about paying for the purchase. We were talking about covering the current MMI quarterly losses which are comparatively small at ~30-50 million depending on using GAAP or not. That's CEO toy money.
You must be confusing quarters with years. Google is making close to a billion a year on Android right now, and that's expected to double every year or two. So it should take less than 12 years in the worst case, and could only take perhaps half that.
And that's assuming MMI and its patents don't contribute any revenue, or if bits are sold off. Also, as I said, MMI currently has $3 billion in cash. They're not broke by any means.
Last edited:
Thanks for the vote of confidence, but I must say that I don't think I know every card that is up Larry Page's sleeve either. Competing with your licensing partners is a tricky business that nobody has ever succeeded at. I think that Google may even close the Android source code off from the competitors/partners and drive them out of business -- unless Larry Page is the man who knows how to make the license and compete model succeed where others have failed. I don't know what Palm or Apple charged for licensing their operating systems back in the day, but it was more than free, and likely more than $6 per year per device that Google gets in advertising.
Currently Apple makes hundreds of dollars per device they sell. Google has to be looking at the fact the iPad profits exceeded Google's total profits, and the iPhone profits were even higher than the iPad profits. It has to make you think that much more money can be made than with giving it away for free and advertising. After all, $6 or even $10 per active device per year (or per user -- not sure how they are counting) is nothing compared to what Apple makes up front with each sale.
I think Google wants a piece of that pie, I just don't know how they are going to share that pie by giving away Android for free to direct competitors (former partners). We shall see what Larry Page does next.
It would depend on if Google acquired all or some of Motorola. If just Motorola's mobile department, then yes, that is ALOT of money. If it is ALL of motorola, then it is a purchase well made.
Motorola has roots in Corporate, Military, and I think even Aviation markets. Everything from computers parts all the way to security components. I bet Motorola even has some D.O.D contracts.
As an Android phone user, I hope this brings about the end of MotoBlur.
Reading some post above, I could see Google charging for Android. There's only 3 Mobile OS that people are going to accept right now: iOS, Android, WP7. WP7 is more than likely not doing as good as it should, and Android and iOS are hand in hand (only Android has greater saturation). So I doubt companies like LG or Samsung are going to just drop Android.
Last edited:
The obvious
The bottom line is that Brother Steve (He attends my church) has changed the world of "mobile everything".
Apple has taken over the corporate world as the planet's newest "most profitable company".
Google (read Android), and soon enough MS, have abandoned competing with Apple in terms of new innovation, and have elected to just stand back in awe and copy what they see working period!
Controlling the entire product evolution, the hardware, software, and strict oversight of all phases of developer input...Android AIN'T gonna stay open and free too much longer once this deal is finalized...belee dat.
You don't spend that much of your total liquid assets and let it run free, or in other words, you don't walk your $6000 thoroughbred English bulldog without a very, very good leash.
Google basically got tired of Apple and Microsoft using their substantial cash piles to outbid them at the last minute, to have yet another deal go south on them...so they just bid it into the insanity-sphere to ink the deal. Nuff said!
The bottom line is that Brother Steve (He attends my church) has changed the world of "mobile everything".
Apple has taken over the corporate world as the planet's newest "most profitable company".
Google (read Android), and soon enough MS, have abandoned competing with Apple in terms of new innovation, and have elected to just stand back in awe and copy what they see working period!
Controlling the entire product evolution, the hardware, software, and strict oversight of all phases of developer input...Android AIN'T gonna stay open and free too much longer once this deal is finalized...belee dat.
You don't spend that much of your total liquid assets and let it run free, or in other words, you don't walk your $6000 thoroughbred English bulldog without a very, very good leash.
Google basically got tired of Apple and Microsoft using their substantial cash piles to outbid them at the last minute, to have yet another deal go south on them...so they just bid it into the insanity-sphere to ink the deal. Nuff said!
When was this ? Apple was listed 8th in 2010 for top profits :
http://money.cnn.com/magazines/fortune/fortune500/2011/performers/companies/profits/
Are you mistaking market cap for profits per chance ?
I think he's confused because of the reports about Apple being the most profitable cell phone company. Far from what he's claiming, though still a good thing.
jW
No confusion here m8's
http://www.msnbc.msn.com/id/44090899/ns/business-us_business/
"Apple officially became the most valuable company in the world." (Direct quote from article)
And yes, I am speaking of Market Value, the most relavant barometer for establishing the world's top spot.
Last edited:
I agree with that assessment. It was also probably hard for him not to laugh at Google as well.
I doubt Apple has reason to laugh at Google at all.
It's pretty amazing to think a search engine has become their biggest competitor without breaking a sweat.