Anyone saying Google overpaid needs to read this : http://www.economist.com/blogs/babbage/2011/08/valuing-patents
Basically, they paid less per patent (close to 2/3rd the price per patent) than the Apple led consortium that bought out the Nortel patents, and got an electronics business included in the deal.
Seems to me everyone is overpaying these days.
Where is your car?12.5 B? Pshh, I have that in the change tray of my car.
You're right - they have more than $76 billion by now.Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)
I'm getting kind of tired of people saying Apple has $76 billion in cash. They don't, look at the 10Q if you don't believe me.
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.
You're right - they have more than $76 billion by now.![]()
True. I'm sure they use it for "securing key components".Too bad $41 billion of that is overseas and can't be used in the USA.
He didn't say they were dumb - he said they spent a little too much then they should have.Yeah.
Google is a really dumb company.
They went from being a search engine to A billion dollar company with it's own OS that has one of Apples biggest competitors in 15 years.
What a bunch of morons they must be.
Motorola are old-hat. They don't have the sort of patents that will protect Google from Oracle's Java claims,
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.
I gurantee when the iPhone 4 is free on every network in the united states with a 2 year contract apple will kill the mobile market, android shares will drop and google will be kicking themselves later for this purchase.. just my opinion.
Chump change for Google. Android alone brings in about $220 million a quarter, and the latest 2Q MMI GAAP loss was $85 million and dropping.
That sounds more like Apple TV "hobby" money for a CEO.
For that matter, MMI still has over $3 billion in cash and equivalents. They could keep losing money for another ten years before that reserve is burned up. However...
MMI has publicly predicted returning to the black by 4Q 2011. We'll see.
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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 ?
IMO all the posters bar BC2009 have missed the point of this acquisition...
Of course, if it was Apple buyng motorolla everybody would be saying wat an amazing idea it was.
I gurantee when the iPhone 4 is free on every network in the united states with a 2 year contract apple will kill the mobile market, android shares will drop and google will be kicking themselves later for this purchase.. just my opinion.
Apple has taken over the corporate world as the planet's newest "most profitable company".
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
I'm pretty sure he's saying "I think they overpaid" without actually saying it.
I agree with that assessment. It was also probably hard for him not to laugh at Google as well.