Sanjay Jha Stories May 22, 2012

Google’s CEO Larry Page made headlines again this morning: He just officially announced Google’s acquisition of Motorola Mobility, while confirming the joined companies will soon create the next generation of mobile devices.

The chief executive took to the official Google Blog to reveal the news:

It’s why I’m excited to announce today that our Motorola Mobility deal has closed. Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone. We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google.

Page appointed Googler Dennis Woodside as CEO of the newly acquired business, and claimed he has known the exec for over a decade, while adding, “He’s been phenomenal at building teams and delivering on some of Google’s biggest bets.”

The post is quick and to-the-point. The most important aspect to it, however, is the last line: “[…] I’m confident Dennis and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come.”

That’s right. Google is now a hardware company.

Google made headway on the $12.5 billion Motorola Mobility acquisition late last week when China finally gave the merger a go-ahead. Motorola promptly filed an 8-K form with the U.S. Securities and Exchange Commission yesterday that specified the deal’s transaction would likely close today.

Check out the full announcement below—or jump over to Google’s blog. 

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Sanjay Jha Stories January 27, 2012

As 9to5Google reported last October, the search Goliath appears to be on a spending spree since 2011. Having reported holiday quarter earnings, the company filed its 10-K with the U.S. Securities and Exchange Commission yesterday. The document, available online at the agency’s website, specifies that Google spent $1.9 billion dollars acquiring 79 companies throughout last year.

The sum includes cash and stock and is nearly double the $1 billion they spent on 48 acquisitions in the previous year. For the entire 2011, the number of full-time employees at the company ballooned 33 percent to 32,467 Googlers. Just do not count on the company satisfying its appetite for acquisitions anytime soon, as the filing reads:

Acquisitions will also remain an important component of our strategy and use of capital, and we expect our current pace of acquisitions to continue.

So, has Google put its acquisition money to good use?

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Deal: Get Pixelbook at 25% off: $750!

Sanjay Jha Stories January 11, 2012

A smartphone reference design by Intel.

Handset maker Motorola Mobility, which was acquired by Google, and is subject to approval from regulators in the United States and Europe, said at CES 2012 yesterday that it would release fewer phones in 2012. The company also announced a multi-year strategic mobile partnership with Intel to make Android smartphones powered by the chipmaker’s struggling Atom platform.

According to Motorola CEO Sanjay Jha’s roundtable meeting with reporters at CES yesterday, Motorola no longer sees value in dispersing its efforts by flooding the market with countless devices:

A lot of products that are roughly the same doesn’t drive the market to a new place. […] I made this decision independent of what the others will. We’re doing what we think is the right thing.

Motorola issued a warning last week on fourth-quarter results, and the company said numbers would come in below the $3.9 billion that most analysts expected. As for the Motorola-Intel partnership…

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Sanjay Jha Stories September 13, 2011

According to an SEC filing made by Motorola today (seen after the break), Motorola was able to get $3 billion more out of Google before they were acquired for $12 billion — even without any other bidders present.  But it isn’t that simple.

Today’s report contradicts August’s, saying Andy Rubin actually assisted in the acquisition when he reached out to Motorola first. It was previously stated that Rubin has no knowledge of the acquisition until the buyout was close to being announced. Rubin and company reached out to Motorola to buy patents, after losing the Nortel deal according to the filing.

The story continues as follows: Motorola’s Sanjay Jha told Google that Motorola wouldn’t only sell patents, rather the whole Motorola Mobility sector. Motorola than rejected two of Google’s offers which were $30 and $37 a share respectively, until both companies finally settled on a final price of $40 per share. Google, it appears, was in a hurry to get the deal done and bid pretty close to Motorola was after in order to avoid going to a long, drawn out auction process.

(via Business Insider)

SEC filing after the break:

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Sanjay Jha Stories August 17, 2011

The smoke has cleared on Google’s $12.5B purchase of Chicago-based Motorola and now that almost everyone has had a chance to speak, I think we’re starting to understand what went down.

Google purchased Motorola (MMI) for $12.5B, a 63% premium over its weekend closing price.  Motorola, however, has around $3B in cash and securities, which makes the real purchase a slightly more reasonable $9.5B for Google.  For instance, if Google wanted to slice and dice Motorola, they’d take the cash and patents and sell off the cable box and device divisions for a couple billion dollars each and come away with about what they would have paid for Nortel – and get double to triple the patents. On sheer numbers of patents alone, it seems like a good buy. Obviously some patents are worth more than others.

If the deal doesn’t go through, Google owes Motorola $2.5B for the trouble, so Google is dead serious about this play.

But back to what Motorola does: They have IP, they make smartphones, they make tablets and they make cable top boxes.  It seems like almost too good a setup for Andy Rubin’s Android to just want to sell off piecemeal.

But did Google want to pick up a hardware company?  I reported earlier this year that the Android Hardware division that Andy Rubin had started up with former Danger Co-founders had intentions to build physical devices, not just Operating Systems.

That scale is what attracted and the former Danger founders to get the band back together, with their goal being to build the hardware and features they want to see show up in new Android devices. It’s not enough for Google to just provide Android software to carrier — now they hope to influence what handset makers build, too.

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Sanjay Jha Stories August 11, 2011

So the war continues… Motorola has been around for quite a long time, so it’s no secret they have a pretty big patent portfolio. During a keynote at the Oppenhimer Technology & Commmunications conference Motorola’s CEO Sanjay Jha had this to say regarding their pool of patents:

I would bring up IP as a very important for differentiation (among Android vendors). We have a very large IP portfolio, and I think in the long term, as things settle down, you will see a meaningful difference in positions of many different Android players. Both, in terms of avoidance of royalties, as well as potentially being able to collect royalties. And that will make a big difference to people who have very strong IP positions.

To sum it up Jha and company may plan to collect royalties from other Android handset manufacturers like HTC, Samsung, etc.

Houston, we have a problem.

(TechCrunch, via Unwired View)

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