Eric Schonfeld is currently working on TechCrunch as co-author. He joined in 2007 and based in New York. Schonfeld oversees the editorial content of the site, selects and edits guest posts, conference program helps Disrupt and CrunchUps, produces some TCTV shows and daily wrote in a blog post. He is also the father of three. ? Read More
The market is trying to make sense of Google's $ 12.5 billion agreement to buy Motorola mobility. (Google Shares are down 2.8% in midday trading to $ 548, while Motorola shares are almost 60 per cent). Citi analyst Mark Mahaney, for example, thinks that this is a "Defensive" move.
Research note he put out today after Mahaney skeptical adheres to all cash transaction. "It may not be a bad use of cash," he writes. "But this GOOG optimize cash?" on the plus side, Google will get more than 17 000 patents as part of the deal, a leading manufacturer of mobile phones and a stronger position in the living room with Motorola's set-top box business.
On the downside Mahaney worries that their impact may be on the Android ecosystem as a whole. Android has so much momentum already with 150 million mobile phones worldwide, why risk slowing down, with the distractions of absorbing one of the leading manufacturers of Android? Equipment is "far from GOOG in the competence and compliance will take at least until the end of the year, if not longer, before the transaction is scheduled to close.
So why is Google going through all the problems? Writes "patents can be the key to this deal," Mahaney ", but they also suggest defensive nature of the transaction. Well you can't really blame Google for that defensive patent, when all the other large tech company that seems to be arrayed against Android.
Photo credit: Francisco Antunes
Google provides search and advertising services, which together aim to organize and money in the world of information. In addition to its dominant search engine, it offers many ...
Read MoreMotorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband infrastructure, enterprise mobility and public safety.
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