Arab Today, arab today motorola acquisition a huge gamble for google
Last Updated : GMT 16:49:39
Arab Today, arab today
Arab Today, arab today

Motorola acquisition a huge gamble for Google

Arab Today, arab today

Arab Today, arab today Motorola acquisition a huge gamble for Google

Washington - AFP

Less than six months after taking over as chief executive, Google co-founder Larry Page has placed the Internet giant\'s most audacious wager yet. The $12.5 billion acquisition of Motorola Mobility dwarfs Google\'s previous purchases and thrusts a company that has made its fortune in Internet search and advertising into an entirely new arena -- hardware. The Illinois-based Motorola Mobility makes mobile phones, tablet computers and TV set-top boxes -- areas where the Silicon Valley-based Google has no experience other than writing the software to power the devices. Integrating an 80-year-old company with 19,000 employees and manufacturing plants around the world will pose a serious challenge and technology analysts are divided on whether Google can carry it off. Whether it does or not, analysts are unanimous in saying that the bold move by the 38-year-old Page, who replaced Eric Schmidt as Google\'s chief executive in April, has changed the landscape of the booming mobile industry. \"The repercussions are huge,\" Gartner research director Michael Gartenberg told AFP. \"It shows that it\'s so hard to look at this market beyond the short term because we\'ve seen so many twists and changes. \"Palm went from irrelevant to being bought by Hewlett-Packard, Nokia was on the ropes and suddenly you have a new CEO and a very close relationship with Microsoft.\" Gartenberg said the Motorola Mobility purchase gives Google the \"opportunity to pursue their pure vision of Android,\" the mobile operating system it currently licenses to handset manufacturers around the world. \"It shows they understand the importance of vertical integration, end-to-end hardware and software,\" Gartenberg said. \"A lesson that Apple, RIM (Blackberry maker Research In Motion) and HP have already learned.\" Google has the resources to \"shake up everyone else\'s business model if they so choose,\" he said. \"Google can now undercut everyone if they choose in terms of premium handset pricing, go to the carriers with a different set of terms.\" Former Wall Street analyst Henry Blodget, editor-in-chief of the Business Insider website, was among those expressing doubt about the wisdom of the deal. He noted that it gives Google a much-needed portfolio of patents to protect Android from lawsuits but said it will be a \"colossal disaster\" unless Google \"quickly sells off Motorola\'s hardware businesses.\" \"Google is a massive global software company with huge profit margins, genius engineers, extraordinarily high pay scales and a near-monopoly on the most amazing advertising business the world has ever seen,\" Blodget wrote. \"Motorola is a has-been, low-margin, global hardware-manufacturing business that operates at break-even.\" According to Blodget, \"mergers of this size rarely work well (or smoothly), even when managed by companies that are very experienced at making huge acquisitions (which Google isn\'t).\" Google\'s largest previous purchases were online advertising firm DoubleClick for $3.1 billion and YouTube for $1.65 billion. Google has no idea how to run a global hardware manufacturing business,\" Blodget continued. \"The global hardware manufacturing business is so brutally tough that even companies that know how to run global hardware manufacturing businesses don\'t do it very well -- Exhibit A: Motorola.\" As for Wall Street, investors also appeared to be initially skeptical of the Motorola Mobility acquisition. Google shares lost 1.16 percent in New York on Monday and shed another 3.27 percent on Tuesday to close at $539.00. Standard & Poors, meanwhile, downgraded its opinion of Google shares on Tuesday to \"sell\" from \"buy\" saying the Motorola Mobility purchase poses a \"risk to the company and stock.\" S&P said the acquisition could \"negatively impact Google\'s growth, margins and balance sheet,\" and cut its 12-month target price to $500 from $700.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today motorola acquisition a huge gamble for google Arab Today, arab today motorola acquisition a huge gamble for google

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today motorola acquisition a huge gamble for google Arab Today, arab today motorola acquisition a huge gamble for google

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday